Like any other business, eBay is not without its scams. If you are cautious, you should have no problems using eBay. Follow these steps to avoid scams on eBay.
Instructions:
1) Check the member's feedback. Feedback is the best way to judge a member's reputation.
2) Research the item you are bidding on. Check the picture to help judge the item's condition.
3) Watch out for email spoofing. These spoofs are emails that appear to come from eBay, but are intended to invade your privacy or infect your computer with a virus.
4) Be wary of bid siphoning from users who send emails trying to sell similar items to bidders at a cheaper price.
5) Watch for bid shielding, which occurs when two bidders work together to get the lower bidder's price accepted. The higher bidder will remove his bid at the last second.
Tips and Warnings:
Be cautious when using eBay. It is hard to catch scams and even the most eagle-eyed user can get taken. If something seems wrong with a member, avoid doing business with him or her. Do not expect eBay to be safer than the "real world." Remember, you are dealing with people you have never met.
Source - eHow
