International Herald Tribune: Hot Auction or Hot Goods: What's Up at EBay?

The IHT asks uncomfortable question about eBay's popularity among criminals for unloading stolen goods. Some have been caught doing so, like a couple in Chicago who were arrested for fencing about $3 million in stolen goods. Canadians wondering where their packed cell phones and computers went might be less surprised to hear about the Toronto airport theft ring that used eBay to move about half a million dollars of loot. eBay says it does not start to investigate a claim of stolen property showing up until police contact it. A user finding grandma's unique silver set at auction online will first have to file a police report. And a company spokesperson, playing down the problem, pointed out that a public auction is a great way to get caught.

One law professor said that eBay may someday find itself on the losing side of a criminal case for facilitating fencing, as the purchase transactions moving through its system may meet the legal definition of "conversion." An eBay spokesperson was quick to reject that contention, but its own figures show that about 100,000 fraudulent transactions occur each year.