You Are Here >> Scams & Fraud >> Phony Escrow Companies Defraud Car Buyers Out of Thousands

Phony Escrow Companies Defraud Car Buyers Out of Thousands

June 2, 2008

The Better Business Bureau (BBB) issued an alert to warn online car shoppers that scammers are posing as phony escrow services in order to defraud consumers out of thousands of dollars.

Internet thieves are now using escrow service fronts with some new twists to steal money and personal identities. Read more at www.bbb.org - go to News Center, News Archive, and then June 2, 2008. Be patient, it takes a few seconds to load.

Escrow Services Fraud

In an effort to persuade a wary Internet auction participant, the perpetrator will propose the use of a third-party escrow service to facilitate the exchange of money and merchandise. The victim is unaware the perpetrator has actually compromised a true escrow site and, in actuality, created one that closely resembles a legitimate escrow service. The victim sends payment to the phony escrow and receives nothing in return. Or, the victim sends merchandise to the subject and waits for his/her payment through the escrow site which is never received because it is not a legitimate service.

If you believe you may have fallen victim to this type of scam and wish to report it, please file a complaint with the Internet Crime Complaint Center (IC3) at www.ic3.gov/complaint/default.aspx

The Internet Crime Complaint Center (IC3) was established as a partnership between the FBI (Federal Bureau of Investigation) and the NW3C (National White Collar Crime Center) to serve as a means to receive Internet related criminal complaints and to further research, develop, and refer the criminal complaints to federal, state, local, or international law enforcement and/or regulatory agencies for any investigation they deem to be appropriate.

Also, visit Escrow.com for security alerts and fraud prevention tips.

How to Avoid Online Escrow Services Fraud

• If the buyer or seller "insists" on using a particular online escrow service or online payment service you've never heard of, before using that service, both parties should verify that it is a legitimate, reputable company. Check out if the escrow service is licensed and bonded with the appropriate state agency, usually the state in which the escrow service is located. Visit its website and call its customer service line. If there isn't one, or you call and can't reach someone, don't use that service. A generic voice mail that says leave a message is a sign that the company may be fraudulent.
• Check with the Better Business Bureau (BBB), your county or state consumer protection agency (check the blue pages of the phone book under county and state government), the Federal Trade Commission (FTC), or your state attorney general's office - where you live and where the online payment or escrow service is based - to see if any unresolved complaints are on file against the escrow service and to make sure the escrow service really is endorsed by these organizations. But remember, a lack of complaints doesn't guarantee that the escrow service has no problems.
• Sometimes the website of a phony escrow service can be detected by sloppy content, for example, spelling and grammar errors, and/or inconsistent information. Other times, scammers can build their phony escrow sites by copying the content from legitimate escrow service sites, such as Escrow.com. As mentioned above, "always contact the escrow company directly" to ensure it has not been a victim of corporate identity theft.
• Escrow.com is a legitimate escrow site, recommended by eBay. Internet Escrow Service (IES) is a wholly-owned subsidiary of Escrow.com. IES only provides escrow services to Escrow.com. Any site that claims otherwise is fraudulent.
• Protect your privacy. Never provide your Social Security number, driver's license number, credit card number, bank account information, or eBay - PayPal info, etc., until you have checked out the seller, and the online payment or escrow service, if you're using one, to ensure it is a legitimate, reputable company.
• Never wire funds via Western Union, Moneygram or any other wire service, anyone who asks you to do so is a scammer. Legitimate escrow companies will not ask you to do this. Legitimate escrow companies ask you to wire money from "your bank to their bank", and provide you with a routing number and account number for their financial institution.
• Reputable escrow services do not use spam advertising.
• Avoid escrow service sites with domain names ending in .cc, .biz, .org, .info., or .US.
• Be aware of fake cashier checks and money orders. If you receive one, the bank will cash it for you, and then hold you responsible when the fake is discovered weeks later.

References:
1) Federal Citizen Information Center
www.pueblo.gsa.gov
2) Better Business Bureau (BBB)
June 2008
www.bbb.org
3) Internet Crime Complaint Center (IC3) www.ic3.gov

SCAMS & FRAUD
Some Scams, Fraud, and Consumer Abuse Items in the News

Federal Laws
Major Laws That Govern Financial Institutions & Protect Individuals in Their Financial Dealings

Organizations

Consumer Info

Miscellaneous

Copyright &
Disclaimer Info
© Loanfactz.com
2004/2010