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.

Protect Yourself

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.

Comments

On 2/28/06 I responded to an ad that was posted on "YAHOO! AUTOS" for 2004 Mercedes 350 ML SUV, Mint Condition and REAL CHEAP. And below is the reply that I got from "Them". I told them that if we did business, that I would have to pick the Escrow service here in the states and of course, got no answer (:-)> They refered to the escrow as "the third party" (this is the end of my letter)

>>>>>>>>>>>>>>In the In a message dated 3/1/2006 6:48:20 A.M. Eastern Standard Time, melisa_jhonson@hotmail.com writes:
Hello,
First thank you for your email regarding my car.

The car is in a perfect condition, the milage is accurate, no scratches, no damages, no hidden defects.Kept it in a warm garage. My boyfriend is devastated that we have to sell it but we have to pay too much money for register it here,so we decide to sell it. My company have relations in States and I worked there for 2 years. I has the oportunity to buy it from there and bring it with me when I come back.The car was buyed from US, so it is US standards,so stay cool it´s perfect compatibile to your standards and you will don´t have to pay more duty taxes on it. And this is an impediment for me to sell it here caus,first, we have a different standards and second will be very expensive for me to register it here.I have to pay an very expensive duty taxes.The price for this car is $6,000.00 USD. The car it is still register in States.What other info. would you like on it? It will be shipped from London,United Kingdom and i will pay the shipping and insurance charges.I will do the arrangements for shipping from here.The original receipt and all remainded warranty information packet with enrollment number is included for you. If necessary ever I will assist you in getting warranty help; most people just dump it on you with a useless warranty.

The payment will be done via secure pay which means that the third party will keep the money until you receive and inspect the car. You have 10 days to inspect the car.I will wait for your email to let me know if you are interested in knowing more details about the purchase.

Best Regards

I was asked by innorvative.com to be an escrow agent for them. Frankly it is impossible to know if they are on up and up or a scam. When I did look into them, I could not find any listing of them with any fraud lists. I decided not to go with them, even though I could use the income, as I cannot know if they are on up and up or not

Awesome blog. Peace out until next time TabathaOster

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