Internet auction fraud remains the most frequently reported online crime. Auction fraud complaints made up about 45 percent of the complaints received by the IC3 in 2006.
Complaints for non-delivery of merchandise represented 19 percent of complaints & the median dollar loss reported per complaint was $724, according to the FBI.
Founded in 2000, the IC3 is a clearing house for all kinds of cyber-crime complaints designed to track the prevalence of Internet fraud in the U.S. It is run in partnership with the National White Collar Crime Center.
I only use Ebay, and I only deal with sellers who have a 99% or greater positive review mix. (Unless they've sold thousands of items, then I look for 100%) I also use PayPal as a buffer between myself and the seller AND I ALWAYS use my PO or UPS box for deliveries. ((I'm just generally paranoid.))