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SCMP Reporter

GREAT deals on everything from computers to holiday homes can be found through Internet-based auctions; just make sure you pick a reputable Web site.

 On-line auctions - branded by some as one of the biggest bargains on the Net and by others as the biggest scam - are hot business in cyberspace. There are about 200 auction sites on the Web by some estimates, and many register hundreds of bidders for each sale.

 Most sites require a mailing address in the United States, but one Hong Kong-based site is auctioning computer equipment on-line to SAR users - and its prices appear to be among the best.

 Many experienced Internet users swear by on-line auctions, which offer some hard-to-beat bargains.

 Phil Ingram, marketing manager at Hong Kong Web-design company Orientation, is one such fan. He recently bought five, high-powered computers at a US-based auction at prices so low that he could afford to have them shipped to Hong Kong by courier and still save money against local retail prices.

 There are concerns, however, that poorly run sites leave users vulnerable to credit-card fraud, and a growing number of scam artists are using auctions as an easy way to bring in money for nothing.

 'I'm one of those people who loves buying on-line,' Mr Ingram said. 'But I am also terrified of auction sites.'  For scam artists, an Internet auction is a relatively easy way to draw money from unsuspecting bidders, without providing the goods.

 In September, a US federal court banned an Internet auctioneer from e-commerce for life - the first such case brought by the Federal Trade Commission.

  Now, software that can turn a Web server into an auction site is making life easier for the scam artists.

 'It's very easy to do,' Mr Ingram said. 'It's just as easy for a cowboy to do.'  An investigation published last month in the on-line magazine CNET reported that auction-running software from a company called OpenSite had a serious security flaw, although the bug reportedly has been fixed since. Auction sites created using the software - OpenSite claims to have 120 clients using it on a day-to-day basis - could be manipulated to reveal names, addresses and credit-card numbers of auction participants.

 In Hong Kong, on-line auctions are relatively new. Several one-off events have been run, and a company is auctioning computer equipment.

 Digital Creation's Cyberbid site (www.cyberbid.com) often gets as many as 200 bidders for its more popular items and has seen more than 400 bids in some cases. The goods listed on its site reveal tempting bargains - a Psion handheld computer that carries a retail price of $5,800 is listed with an expected bid price of $1,501; a Sony notebook computer retailing for $17,000 is expected to go for $8,801 on-line. Many of Cyberbid's details are presented in Chinese only.

 The site sells mainly computer and electrical goods through arrangements with local vendors. Robert Lai Kin-shing, general manager of Digital Creation, said most of those interested in the on-line auction were 20 to 34-year-old technology enthusiasts.

 Cyberbid runs the same tried-and-tested system as the US site Onsale (www.onsale.

com), which is one of the Internet's most respected auctioneers. Potential bidders sign up for 'membership', which is free but requires them to provide credit-card and address details over a secure link. They are sent a password giving access to auctions and to other services, such as book sales and chat lines.

 Auctions run at pre-arranged times and usually last three days. Bids must be raised by pre-designated increments, and the sale is closed at a specified time. As bids are entered, they appear on the screen, so everyone can see the level of bidding.

 Mr Lai said the site had 60,000 registered members. Auctionable items were provided by local vendors, with Digital Creation taking a small percentage of the sales. In some cases, if bids did not reach a level set by the vendor, Digital Creation would make up the difference.

 Ian Henry, director of the Connection Group, which ran a charity auction last year, said there were dangers in using on-line auctions, but it was up to the user to decide whether the site seemed legitimate. 'There are the same risks as the real world,' he said.

 Experts recommend checking who runs a site and whether the company is registered with the relevant authorities before giving card details.



Web-auction bargains call for caution