Doug is a frequent visitor of online auction sites.He uses two different accounts to place a low followed by a very high bid on the desired item.This leads other bidders to drop out of the auction.He then retracts the high bid and wins the item at the low bid.This form of e-auction fraud is known as ________.
A) shill bidding
B) bid luring
C) rafter bidding
D) mystery bidding
E) bid skimming

Question

Quizplus · Accepted Answer

Doug is engaging in shill bidding by using two different accounts to artificially inflate the bidding process and mislead other bidders into thinking that there is genuine competition for the item. By placing a very high bid and then retracting it, Doug is manipulating the bidding process to his own advantage. This is considered fraudulent behavior in online auctions.

Doug Is a Frequent Visitor of Online Auction Sites