There are three nuggets of wisdom that can prevent internet users from being ripped off when trading online, writes Eamon McGrane

Online fraud has become big business and a survey in Britain found it to be one of the biggest factors in keeping people away from buying and selling on the internet.

The British government survey showed that 21 per cent of internet users feel more vulnerable to cyber crime than any other criminal activity. Only credit-card fraud was perceived to be more dangerous, according to 27 per cent of the 1,317 people surveyed.

All of this is not good news for companies such as eBay, whose model is based on trusting strangers online.

Not that eBay is crying into its beer over the issue, when you consider that there are about 210 million people around the world using it to trade online. In this part of the globe, eBay.ie has more than 500,000 users, while eBay.co.uk has some 15 million users.

However, the company is always looking to get more people to use it. A recent survey by eBay found that about 17 per cent of internet users were put off using the internet completely by a bad online experience.

Despite this, eBay is attracting more citizens into its community every day, while the amount of people setting up their own online business and the number of established, bricks-and-mortar companies using eBay continue to grow.

If you are thinking of trading online as a buyer or seller, then common sense is called for, according to Gareth Griffith, eBay's head of trust and safety for Ireland and Britain.

"It's about confidence, and some people aren't confident enough to put in their credit-card details, and confidence comes from trust and understanding.

"A big part of my job is to help people understand the issues around giving credit-card details over the internet. When is it unsafe? What are the signs? And, equally, when is it safe to trade?"

Griffith recommends paying attention to the URL and making sure it has "https" in it. The "s" is the important letter, as it stands for secure.

There should also be a padlock insignia that sits at the top or bottom of your browser.

"Little things like that make a huge difference, but if you don't know to look for them, then you don't know," he says.

For general safety on the internet, Griffith has three nuggets of wisdom to be used as the foundation of any online trading adventure.

Firstly, take the time to learn what you're doing. Just like driving lessons or studying the instruction manual for an electronic device, trading safely means you learn about what you're doing.

Secondly, always know who and what you're dealing with. As Griffith says, the internet is by nature anonymous. But there can be ways of assembling information on the other person. For instance, when it comes to eBay, you can check the feedback score, where people rate the buyer or seller based on their performance during the transaction. Also, ask plenty of questions of the buyer or seller, as dishonest traders tend to not reply or sound suspicious.

Thirdly, Griffith advocates paying safely. "If there is a 'bad guy' out there, all they want is your cash, so you need to pay safely. Don't use something that has no tracking mechanism such as Western Union, which does not recommend you use them for internet purchases anyway. It's a great company but not designed for online transactions," he says, recommending PayPal instead.

"PayPal is traceable and the users have to be verified, so if something goes wrong you're covered for up to €500 and you can get your money back."

Griffith adds: "Always go in with the same reasonable judgment as you would when trading anywhere. The internet often has extremes - some people think they are walking into a safe-walled environment and there are others who don't trust a thing about it. So take the time to educate yourself and develop the common sense needed to buy and sell safely online."

For those people keen to sell online and for businesses looking for a new marketing avenue, eBay can be an ideal platform.

Private individuals, sole traders, small and medium-sized enterprises, and indeed large companies who don't have an e-commerce model, will find it relatively easy to get online with eBay and start trading.

Ebay often holds what it calls an "eBay university", where it tutors members and potential members on how to trade online.

The main advice for sellers is to describe the goods clearly and to ensure all the keywords are in the description panel. You should also ensure you select the right category for the goods you're going to sell.

It is recommended that you start your item for sale at a low price and make it available worldwide.

You can also set up your own shop on eBay. This will help your listings as you can direct potential buyers into your shop to view the other items you have for sale.

Finally, if trading internationally, be careful not to make a loss on the postage. Check out the various postage options for different destinations.