http://www.squidoo.com/bidhere
According to them, you need to know exactly when to start bidding, so you don't pay a huge sum of money and not win the auction. You need to pay them every time you place a bid, so they get money from that, so there is no need for them to scam people. However, do look around for more opinions before you get anything there.
However, looking at their ended auctions page, I can see how they make money. I saw a D700 + 24-70 f2.8 that went for $110.08. That looks dirt cheap but it actually works out to $4678 that they get in terms of bids (each bid costs $0.85 and raises the price by $0.02). They say you save $5068.82 by buying at that price. But that's based on the retail price. They would probably get it cheaper, so they don't lose much or they can even earn from that. There are other auctions where the savings are less. Like a D3100 that went for $127.84, which works out to 6392 bids (all auctions start at $0) which is $5433.20 that they make from the bids. They earn a hell lot from that, and in reality, they don't have to scam people to make money, and scamming won't make them as much as buying bids would.
I think it's a matter of knowing when to bid. If you don't, you'll end up losing a lot of money. If you do, you can even earn money from buying from them and then selling off in B&S.