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Watch Out For Fake Ebay Escrow Scammers
Thankfully, online auction scams don't happen very often. But
when they do, it causes distress, anger and serious concern
amongst the eBay community.
But before we all panic, let's just remind ourselves that the
vast majority of eBay users are polite, honest and reliable
people. However, one area, that has caused some concern
recently, is that of fake escrow accounts.
For those of you unfamiliar with the escrow arrangement, the
following brief explanation might help. But if you're already an
escrow expert then please bear with me at this point.
A reputable escrow agent acts as an intermediary between buyer
and seller. Such an agent is normally used only in high value
transactions. From the buyer's viewpoint, he doesn't want to
send a large payment and then find that his purchase never
arrives. The seller, on the other hand, is concerned about being
tricked into sending his valuable item and then not receiving
payment. The solution is to use an escrow service and this
arrangement satisfies both parties.
So the buyer pays his money into the escrow account. The seller,
having been notified that the escrow agent has received the
funds, can then ship the goods, happy in the knowledge that the
agent will soon send him the buyer's payment. The escrow service
providers will make a charge and this is usually added to the
buyer's total payment in the same way as a shipping cost.
So where does it all go wrong? Unfortunately, a dishonest buyer
simply sets up a fake escrow account.
The auction will end in the normal way. The buyer then tells the
seller that they've set up the escrow arrangement and
transferred funds to the escrow account ready for payment. The
seller then visits the escrow site, sees that everything appears
to be in order and is happy to send the goods.
Time passes but no payment is deposited into the seller's bank
account. The worried seller now sends an email to the escrow
service to find out the problem. But no response is received.
Now realising that something has definitely gone wrong, the
seller visits the escrow service's website only to discover that
the site has disappeared. The buyer had simply set up a bogus
escrow service that was so convincing that it looked totally
genuine.
Intelligent crooks can now create a fake escrow site that looks
sophisticated and professional. They may even feature a Verisign
Secure, TRUSTe or BBB logo. To the innocent observer, such a
site is very convincing.
So how do sellers protect themselves when selling their
expensive items? The following suggestions should ensure that
you never fall victim to the escrow scammers.
1. Make sure that YOU choose the escrow service. Don't leave
this decision to your buyer. You can, of course, choose any
escrow agent you wish but eBay have a recommended list
(see
below). I have always followed these recommendations and never
experienced any problems.
- www.escrow.com - www.tradesecure.com.au (for Australian users)
- www.iloxx.de (for German users) - www.escrow-europa.com (for
Italian and Spanish users)
2. If you think it's necessary, make your own checks on the
escrow company to confirm that it's legitimate, fully licensed
and well established. You could telephone them and ask to speak
to the individual responsible for account administration. If
you're not completely satisfied then steer well clear!
3. Today's scamsters can give you the impression that you're
dealing with a legitimate escrow website, when in fact it's a
fraudulent trick. So satisfy yourself that the site you're using
is the one you think it is.
You can check out the site's domain registration using such
tools as WHOIS (www.whois.sc) or try Network Solutions' look-up
tool (www.networksolutions.com). These will tell you when the
domain name was registered. If it's a recent registration, say
just days or weeks old, then probably the site is not
legitimate. Also, if the registrant is based in a different
location to where the escrow company purports to be, then BEWARE!
4. Never be tempted to wire money to the escrow company to make
a payment. Escrow.com states clearly on its website that it does
not accept payment through Western Union or Money Gram.
5. Although an escrow service obviously adds additional expense
and effort to your auction transaction, don't be persuaded by
your trading partner into not using one.
Also, NEVER decide to conclude your transaction outside of eBay.
If something did go wrong, you would then have no protection
whatsoever.
It's my view that the legitimate escrow agent provides an
extremely useful and essential service. Remember that eBay
recommends the use of an escrow agent for purchases over £250
but you can use it for any level of purchase. It's your decision.
But, like everything else in the trading world, do your homework
and be prudent.
For more information on escrow services visit eBay's own
excellent information page at:
http://pages.ebay.co.uk/help/community/escrow.html
Finally, another very useful site, which is a database of
fraudulent escrow sites, can be found at: www.sos4auctions.com.
Safe trading...until the next time.
About the author:
With some 30 years of business experience, online auctions and
information marketing have now become my passion.
Get the Salesplease Search Newsletter for marketing strategies
that produce results and information on online and offline
opportunities that will increase your bank balance.
You'll receive some valuable FREE immediate bonuses. For further
details: http://www.salesplease.com
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