| What are scam or shill bidding Penny Auctions? |
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Unfortunately there are some people out there who are taking advantage of the tremendous popularity of penny auctions. Some sites are set by con artists, others try to rig the auctions to drive up the price. The best way to avoid these disreputable sites is to visit only established penny auction sites and to do your homework. See our article, What to look for when choosing a Penny Auction for more details. Scam auction sites are set up with one purpose only, to steal your money. Items won are not delivered, emails are not answered. They usually don't last long, since most people realize very quickly and alert others. Nowadays it is relatively inexpensive to start your own penny puction site, and several unscrupolous operators think that they can make a quick buck online. If you are ever a victim of a scam site, be sure to alert the appropriate authorities and tell others. These people belong in jail. Shill bidding is when an auction owner participates in their own auctions to drive up the price of an item. If a particular auction is not very popular, the owners of the site can risk losing money if only few people bid on an expensive item. By bidding on their own auction, the owners hope to drive up the price high enough to make a profit, cheating honest bidders out of a good deal. Be sure to watch the activity on a penny auction site to monitor that bids are being placed by different people or usernames. 
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