The Truth about Online Escrow Services
Online escrow services may not be all they’re cracked up to be.
You’re making a rather large purchase online from a private party. You don’t know the party you’re dealing with and they don’t know you. You both come to the conclusion that for the protection and peace of mind of both of you, you should enlist the help of an online escrow service. The problem is, online escrow services aren’t always what they’re cracked up to be, and sometimes they’re even an outright scam.
What Are Online Escrow Services?
In theory, online escrow services are intended to help buyers and sellers when conducting a transaction that involves money and goods or services. The buyer sends the escrow service payment. The seller then sends the product or provides the services to the buyer. When the buyer acknowledges receipt of said product or services, the online escrow service releases the funds to the seller. In the end everyone is happy. Unfortunately, this isn’t always the way things work out.
When the Escrow Service is a Fraud
In some instances, online escrow services are no more than a fraud. Sometimes they’re in cahoots with the buyer, sometimes the seller and sometimes they’re committing fraud all on their own.
When online escrow services are in cahoots with the seller, the seller receives their money but the buyer never receives their product or service and they never receive their money back. When online escrow services are in cahoots with the buyer, the buyer receives the product or service but the seller never receives their money, even though they provided the product or service.
Sometimes the fraudulent online escrow services are in cahoots with neither the buyer nor the seller. In these cases, the buyer receives the product because the seller sends it to them, but the seller never receives the cash that the buyer sent to the escrow service. Instead, the online escrow service takes off with the cash, leaving the seller empty-handed.
When dealing with online escrow services, it is very important that you deal with a verified and reputable company.
For more information about protecting yourself from online escrow services fraud, visit these websites:
This is a great website with a multitude of online escrow fraud information.
Escrow.com is one of the established, reputable online escrow services.