I wasn't sure where to post this so here goes.
Fraudulent Escrow Services Leave Buyers In the Lurch
If you buy items at auction through eBay or other online
auction services, you'll want to pay attention to this one.
For expensive goods (say, over $1,000), many auctioneers and
bidders use an 'escrow' system. Escrow means that the winning
bidder sends the cash to a neutral third party (an escrow
company) to be held, usually until the goods are shipped and
the bidder is satisfied with their condition.
The benefit is that the escrow company is supposed to be a
neutral party to the transaction, a middleman, that protects
both the auctioneer and the bidder in case something goes
wrong. Of course, there is a charge for this service.
Well, some folks are taking advantage of this system to bilk
bidders out of thousands of dollars.
It's scarily simple: the scammers, working in cahoots with the
auctioneer, set up a phony escrow company, complete with its
own Web site. When you 'place the money in escrow,' you're
just sending it to scammers, who then use stalling tactics to
explain why the auction hasn't cleared escrow. Eventually they
fold their tents and flee, and you're left thousands of
dollars poorer and with no recourse.
Here are some tips to avoid getting scammed by this fake
escrow scheme:
1. Use an escrow service recommended by the online auction
site (for example, eBay recommends Escrow.com).
2. If the seller wants you to use a specific escrow company,
ask why. Be sure to check it out carefully.
3. If anything seems fishy, find another escrow company.
More information about fraudulent escrow and auctions:
eBay Members Scammed by Fraudulent Escrow Sites:
==> http://www.auctionbytes.com/pages/abn/y02/m10/i26/s02
Tech TV - New Twist on Auction Fraud:
==> http://www.techtv.com/news/security/story/0,24195,3405234,00.html
Fraudulent Escrow Services Leave Buyers In the Lurch
If you buy items at auction through eBay or other online
auction services, you'll want to pay attention to this one.
For expensive goods (say, over $1,000), many auctioneers and
bidders use an 'escrow' system. Escrow means that the winning
bidder sends the cash to a neutral third party (an escrow
company) to be held, usually until the goods are shipped and
the bidder is satisfied with their condition.
The benefit is that the escrow company is supposed to be a
neutral party to the transaction, a middleman, that protects
both the auctioneer and the bidder in case something goes
wrong. Of course, there is a charge for this service.
Well, some folks are taking advantage of this system to bilk
bidders out of thousands of dollars.
It's scarily simple: the scammers, working in cahoots with the
auctioneer, set up a phony escrow company, complete with its
own Web site. When you 'place the money in escrow,' you're
just sending it to scammers, who then use stalling tactics to
explain why the auction hasn't cleared escrow. Eventually they
fold their tents and flee, and you're left thousands of
dollars poorer and with no recourse.
Here are some tips to avoid getting scammed by this fake
escrow scheme:
1. Use an escrow service recommended by the online auction
site (for example, eBay recommends Escrow.com).
2. If the seller wants you to use a specific escrow company,
ask why. Be sure to check it out carefully.
3. If anything seems fishy, find another escrow company.
More information about fraudulent escrow and auctions:
eBay Members Scammed by Fraudulent Escrow Sites:
==> http://www.auctionbytes.com/pages/abn/y02/m10/i26/s02
Tech TV - New Twist on Auction Fraud:
==> http://www.techtv.com/news/security/story/0,24195,3405234,00.html
