NEWS From BoatU.S. Boat Owners Association of The United States 880 S. Pickett St., Alexandria, VA 22304 BoatU.S. News Room at <http://www.BoatUS.com/news/releases.asp>http://www.BoatUS.com/news/releases.asp TOP FIVE TIPS FOR BUYING AND SELLING A BOAT ONLINE Boat Buying Fraud Cases Illustrate Need for Diligence The old adage, buyer beware, has never been more true than in today's internet age. In the July 2003 issue of BoatU.S. Magazine, two BoatU.S. members detail recent online boat selling experiences rife with fraud in the feature, "A Tale of Two Internet Scams." "Luckily, both members recognized the fraud before they became victims," said Caroline Ajootian, assistant vice president, BoatU.S. Consumer Affairs. "Desperate sellers, usually those with older boats or those that may not sell easily, are often targets for scams." Fraud can involve the seller receiving monies without providing the goods, or a buyer receiving goods without providing payment. "Unfortunately, online shoppers usually think they are getting a better deal on the internet, which sometimes clouds their judgement." adds Ajootian. To assist boat buyers and sellers with online boat buying transactions, the BoatU.S. Consumer Affairs Dept. has the following Top Five Tips for Buying and Selling a Boat Online: 1. Read the rules: Review all of the rules that an online boat buying or auction site provides and understand them completely before any transaction. A recent court case in California, for example, ruled that eBay did not need a state boat broker's license to operate in the state. Broker licensing generally adds a layer of consumer protection. 2. Escrow funds: Buyers should only use an online auction site that offers escrow, a feature that allows payment to be held by a third party - usually the auction service - until the boat delivery is confirmed. 3. Pay carefully: Buyers should pay by credit card, cashiers check, or online payment systems that provide security, usually indicated by a "lock" icon. Never provide Social Security numbers or bank account numbers. As a seller, never accept a personal check and never release a boat until funds have cleared. In one BoatU.S. Magazine case, a BoatU.S. member who was selling a 53-foot ketch was asked to return an "inadvertent" overpayment from a fraudulent buyer's bank draft. Fortunately, the reader's wife was too sharp for the ruse - the draft had yet to clear and was a most likely a fake. 4. No POB's: Buyers and sellers alike should ensure that the other party has a physical address and full contact information. Post Office boxes can be a red flag for scam artists. 5. Read Up or Report: The Federal Trade Commission has many of the internet scams posted at <http://www.ftc.gov>http://www.ftc.gov (click on "For Consumers," then "E-Commerce and the Internet"). You can also file a complaint here. The National Fraud Information Center/Internet Fraud Watch reports that 90% of all internet fraud is related to online auctions. To learn more about online scams, or to also file a complaint, visit <http://www.fraud.org>http://www.fraud.org (click on "Internet Fraud"). To get a copy of the July 2003 BoatU.S. Magazine with the story "A Tale of Two Internet Scams," visit any BoatU.S. or West Marine store. BoatU.S. is the nation's leading advocate for recreational boaters and provides its 540,000 members with a wide array of consumer services including a group-rate marine insurance program that provides over $7 billion in hull coverage; the largest fleet of more than 400 towing assistance vessels; discounts on fuel, slips, and repairs at over 700 marinas; boat financing; and a subscription to BoatU.S. Magazine, the most widely read boating publication in the U.S. For membership information visit <http://www.BoatUS.com>http://www.BoatUS.com or call 800-395-2628. ###