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With thousands of sellers and millions of buyers on the Internet there will always be a couple of dodgy characters.  This page will highlight the most common frauds
Fake Goods
How do you know that your Gucci Bag really is genuine? - The simple approach is to do your research.  If someone is selling goods at a fraction of the high street price chances are its not genuine.  
Often fakes are in different colours or different sizes so if someone is selling a unique chanel bag in red and no-one else has it in red its not likely to be real.
Most brand names will have a www site so check on that for lists of approved stockists.
If you do buy a fake contact trading standards at once and your credit card company to claim a refund.
E-mails asking to confirm Credit Card Details
A hugely common fraud, you may get an e-mail apparently from a retailer asking to confirm your credit card details.  This is a particular problem with companies like Amazon who store your credit card details on their system. If you receive these e-mails DON'T click on any links but instead go to your www browsers and TYPE IN the www site address.  You should NEVER give your PIN number out on the Internet - it is never needed by a retailer
Non-Existant Goods
The easiest con is simply to take your money and never send anything!
If this happens contact your credit card company and trading standards if the supplier is the UK. It is the supplier's responsibility to get the goods to you so don't be put off if they ask you to claim for the goods.  Note goods sent via Royal Mail can take up to 15 working days (three weeks) before RM will accept they are lost.
This HMSO publication gives a good all around guide to your rights and what to
do if you have problems

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