Have you ever heard the term “eFencing”? It’s a growing
problem as thieves are increasingly using the internet and online auctions to
sell stolen property. Rather than use a traditional
“fence” (note, a fence is an individual who knowingly buys stolen
property for later resale in a (usually) legitimate market) like a pawnshop or a
passersby on a street corner to unload stolen merchandise, many thieves are now
cutting out the middle man and selling directly to you, the consumer. The internet and places like eBay make this a
compelling alternative.
Here’s why…
1) Anonymity
and safety.
Ø "There's no need for the pawnbroker.
Internet auctions have suddenly become a really easy way to fence stuff," said Frank Dudley Berry Jr., who prosecutes high-tech crimes for the Santa Clara County district attorney's office.
Ø Rather than walk into a pawnshop (who is careful
not to put their business at risk by buying stolen merchandise) or otherwise
put themselves at risk by trying to drive around and unload large quantities of
stolen goods all once, it’s much safer to just stay at home, sell the stolen
product online and mail it piece by piece to unsuspecting buyers.
2) Profitability.
Ø Selling stolen goods or gift cards on eBay, a thief
can typically net 60-80% of actual value. This compares to 10-20% at a pawnshop. With eBay, thieves can steal less, but make more.
3) Economies of
Scale.
Ø Pawn shops are local, so a thief has a limit on
how much merchandise they can unload each month. eBay is nationwide making it a virtually
unlimited market. This means small time petty thieves now have a
way to scale into major problems.
4) Lower risk
of being caught.
Ø “It would be impossible for us to be able to
pinpoint a stolen good before it gets reported to us," Hani Durzy from
eBay has said.
"We don't own it. We don't ship it. We never handle it." Unfortunately, because eBay’s policy is to not
rigorously inspect or verify sellers to ensure they are legitimate and because
they don’t police for this problem very effectively, the thief can easily set
up shop with a low risk of being caught.
Ø Even if a buyer of a fenced item reports it to
eBay and the seller’s eBay account is shut down, they can simply open another
one and continue selling.
Unfortunately, the reach and anonymity of the Internet have
helped turn online auctions into the newest way to fence stolen property. Places like eBay, Yahoo Auctions and even
CraigsList where little verification of the seller is performed, create a great
incentive for thieves to use them to unload stolen merchandise. Unless these venues change their approach and
introduce effective seller screening and verification practices and hold these
sellers accountable for their actions, there is little doubt the problem will
continue to grow.
So, next time you get pick pocketed or your house is robbed,
first call the police, but second, look for your stuff on eBay. With eFencing so easy to do and with so
little downside risk, you just might find it there.
For more on eFencing, a recent article from NBC can be found
here.
YES!! Thank you for covering eFencing - it is a massive and growing problem - especially with music instruments. My custom guitar was stolen - I tried posting a stolen notice on Craigslist only to have my post flagged and deleted - over 300 times! I contacted CL legal and they did nothing.
So I'm dong something - I started posting stolen music instrument info on my site screamingstone.com.
Please spread the word about the stolen instrument list - and thx again for writing on this total BS situation.
Rock on.
Posted by: Screaming Stone | September 21, 2007 at 11:23 PM
Great eBay article!!! Here's another eBay article from eZine that you might want to check about eBay marketing.
http://ezinearticles.com/?Marketing-Your-eBay-Based-Business&id=393734
Posted by: Blind Auctions Article | February 18, 2007 at 02:29 PM