Gangs con eBay users into false payments

Internet thieves are using online auction site eBay to con customers by sending them hidden software which steals their sign-on details.

After getting their passwords, the gangs - thought to originate from Russia and eastern Europe - fool their victims into sending money by persuading them they have been successful in bidding for an item.

The fraud is a variation of the widespread con in which thieves trick people into revealing their log-on details by sending them fake emails purporting to come from eBay or banks. eBay is becoming increasingly popular with criminals because of its popularity. The website lists some two million auctions every day.

In this variation they send a spam email which, when opened, infects the user's computer with software which records every key-stroke they make. From there it is a short step to discovering the password details of the victim's eBay account.

Mick Randall, head of operations for the National Hi-Tech Crime Unit, part of the National Crime Squad, said: "Once an eBay seller has been infected with a key logger, criminals will be able to log into their account and see all the transactions that are being made.

"This will allow them to see details of all the eBay-users who have made a bid for an item. The gangs are using this information to steal money from unsuccessful bidders by sending emails, purporting to come from the seller, informing them that the winner has dropped out and asking them to send payment. Buyers will have no idea that the email has come from a crook and they often send money in the belief that they are buying the item, which will, of course, never arrive."

Another variation targets customers who are signed up to PayPal, eBay's money transfer service. Using the key logger, a member of the gang signs on as the victim and bids for an item being sold by another member of the gang.

Mr Randall said: "A Western Union BidPay cheque is sent from the person's PayPal account to the thief after he or she has unwittingly won the auction. The victim will have no idea that someone else has done this until a bank statement appears at the end of the month." eBay insisted that the system was safe. A spokesman said: "eBay uses state-of-the-art technology to ensure that the site is as secure as possible. Additionally, nearly 1,000 employees, with backgrounds in law enforcement, customer support, advanced computer engineering and analysis, are dedicated to making eBay one of the safest places in the world to trade."