Ten tips to avoid being scammed.

More and more people are turning to online auctions in hopes of finding top-notch goods at fire-sale prices or making a few bucks off the baubles and gadgets collecting dust in their garages. As they grow ever more popular, auction sites are becoming a magnet for the unscrupulous. In fact, according to Internet Fraud Watch, operated by the National Consumers League, online auction complaints were the number one Internet fraud complaint in the U.S. in 2005.

Auction sites are scrambling to combat fraud, but the nature of online commerce makes it virtually impossible to eliminate it totally. Here are ten tips to help you avoid some of the common pitfalls.

1. Educate yourself. Start slowly, whether you're a buyer or a seller. Carefully read the auction site's rules and FAQ pages before listing an item or making a bid. Spend some time on a particular site to get the lay of the land. When you're ready, start by bidding on relatively inexpensive items or, if you're selling, first sell a low-cost item or two. This reduces your risk while you learn how online auctions really play out.

2. Check out sellers and buyers. Take the time to find out more about the buyer or seller you're dealing with. Check out feedback on the other party -- auction sites allow users to post positive or negative comments about their experiences with other users. Don't deal with users with negative feedback or no feedback. And remember, you can't always believe positive feedback, because a user can use an alternate email address or a friend to pad their feedback with undeserved praise.

3. Check retail prices before bidding. Don't assume you'll get a great deal -- or even a good one -- just because an item is being auctioned online. Internet auctions have become such big business that brick-and-mortar retail stores are selling their goods online at regular retail prices. Check the price of the same or a similar item elsewhere by searching online stores, classified ads, and/or auction sites for comparable prices. Don't forget the costs of shipping and insurance, which may make buying locally a better deal.