Top 10 scams of 2011
A penny earned
Identify it: Penny auctions are very popular because it seems like you can get something useful - cameras, computers, etc. for way below retail. But you pay a small fee for each bid (usually 50 cents to $1), and if you arent the winner, you lose that bid money.
Avoid it: The Better Business Bureau recommends you treat these auction the same way you would legal gambling in a casino know exactly how the bidding works, set a limit for yourself, and be prepared to walk away before you go over that limit.