eSnipe CEO asked: What are the risks?

Are there any problems with using services like eSnipe?

Says Tom Campbell, CEO of eSnipe, Inc: "eBay has been evolving its fraud control system in a way that makes it difficult to place your bid on a sniping service without running afoul of its unannounced security measures from time to time. For that reason it's usually best to do some occasional bidding from home, or your office, from time to time as well as using your auction sniper, such as eSnipe."

Fraud control, eSnipe auctions, and the eBay sniper

The scenario goes something like this. You plan to buy on eBay as a sniper, auction being the best way to get a good price. Now suppose you decide to place bid on 20 inexpensive items. Suppose further that you use eSnipe instead of placing the bid yourself. What if you haven't placed a bid using eSnipe before, but have placed a lot of bids from home? It seems as though this can trigger eBay's security precautions, especially if you're a new customer. And it makes sense. Why?

Who's Doing Your Bidding? eSnipe or a Mugger?

Again, Tom Campbell of eSnipe: "Imagine you lose a credit card, get a replacement, then go to a wedding out of state right after you get the replacement card. You then visit a store to buy the happy couple a present (instead of bidding for it, you sniper auction specialist you) and the charge doesn't go through." It makes sense when you think about it: the credit card company has a pattern of you buying from one area, and suddenly the new card (one of the primary causes of credit card but not eBay bidding fraud) winds up in a place you haven't visited in a long time.

eBay Sniping, eSnipe, and your Credit Card: Similar

If you didn't warn the credit card folks, it is only natural that they'd be wary of letting you use a brand new card in a new location. The same is true with eBay: their bidding security software seems to feel that a bid coming from a new place is a potential source of fraud, whether that new place is eSnipe or not. Moral of the story: Every so often do your bidding from a place you're likely to return to, say, your home computer and your office computer.