With the increased internet use in buying and selling products new trade arrangements are cropping up every day. For instance, drop shipping which has become the preferred method of trade was unheard of some time back.
Although the internet has provided one of the most convenient ways to carry out business, it has also provided scammers with an avenue to swindle people off their hard-earned cash. New types of online scam crop up every day since the scams are exposed after a short time of operation.
This means the scammer has to keep on changing his or her tactics to survive. One of the favorite methods used by con artists is escrow scam . In genuine cases, escrow service is supposed to protect both the buyer and the seller where the two parties feel that one of them may fail to honor the deal.
The escrow service is supposed to receive the goods on behalf of the buyer and money on behalf of the seller before dispatching each to the required party.
Escrow scam is a straightforward confidence trick. The scammer sets up a bogus escrow company then looks for product sellers pretending to be a buyer. The transaction usually follows normal procedures with the buyer even bargaining for a better price to convince the seller that it's a genuine deal.
When the two parties agree on a price the buyer will suggest they use escrow service to protect his interests. If the seller agrees, the escrow scam is on. Once the seller sends his product, the buyer changes his contact information severing communication. In these cases the escrow company does not offer any assistance to the swindled party.
To avoid being a victim of escrow scams, it's advisable to run a background check of the escrow company before using their services. There are online sites, which can help you run these checks. Its also advisable that you use a different company than the one suggested by the buyer to avoid exposing yourself to this fraud.
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