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Phony Escrow Website Scams
Too much trust can cost you big time when it comes to escrow companies on the web if you are tricked into using a fake escrow site
Fake escrow web sites may be one of the most successful internet scams of all time. This is because
they prey on big ticket auction winners and rely on the consumers trust of escrow web sites. The losses
incurred by auction winners from phony escrow sites is in the tens of thousands of dollars at a time
and has quickly added up to millions of dollars in losses for big ticket auction winners. This has
happened because the use of escrow web sites has been considered the safe way to make an exchange when
an online auction involves an item of more than average value. This almost universal trust of escrow
opened the door for the criminal element to come in and exploit that trust. You need to be very careful
because it's hard to tell a phony escrow site from a real one.
How to spot the fake escrow sites
When phony escrow web sites first appeared they appeared to be unprofessional and were much easier
to spot. They had poor layout and graphics or were filled with poor grammar and spelling. But as
time has gone on and fraudulent escrow scams have become more successful they have become far more
slick and professional. This makes distinguishing between a real escrow site and a fake one almost
impossible unless you are prepared to research the information on the web site. Almost all you
can do is rely on recommendations from other consumers or financial institutions.
But if you look
around you may find signs that the content was copied from a real escrow web site and the phony
site neglected to change information on pages like the privacy agreement. You can also keep an eye
on who and where the money is going to in case anything seems unusual. An example might be a payment
to Nebraska Investments Corp. going to a Romanian bank. Another sign things might not be kosher is
if the seller insists on using a specific escrow website. If it's the one the choose or "no deal" you
might not want to do business with them. If the seller and escrow company happen to have the same
email address or appear to be related in any way there is a high likelihood that something is not right.
Always pay for your online auction with a credit card
And no matter how great a bargain it may seem to be, never buy anything online from someone
who approaches you through instant messaging or e-mail. Often, what happens is the contact
person will tell you they have the item you are bidding on and will sell it to you for less.
They may even lead you to fake Web sites they set up. By registering on the site, you provide
them with all the information they need to steal your identity -- and of course, you never
receive the items you paid for at their site.
To stay safe, only shop sites you know and trust.
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