Escrow services

Fraudulent escrow services

An escrow service is a company which holds money during a purchase until the goods are received by the buyer.

When the buyer has accepted the delivery, escrow pays the seller.

However, fraudulent escrow services are operating which appear legitimate but are run by fake sellers resulting in the buyer losing their money and never receiving their goods. The sellers place false adverts for products with an unusually low price. When the buyer enquires they are sent a standard reply, which suggests using a particular escrow service that the seller has used before.

The escrow site may feature false license numbers and trademarks or security to make the site appear genuine. However, after money has been sent to these false sites or sent to the seller on the request of the escrow site the buyer will have no fixed details and cannot be traced. Any email used will be free and web-based and therefore untraceable. A legitimate escrow site would never send you an email telling you to send your money or product directly to the third party. They will not tell you to send payment via Western Union either as this is not a traceable product.

If you are unsure or suspicious of an escrow service, don't use them. Try searching the internet for the company name- a large and reputable company should have many pages of reference to the company and a professional website. Ask your bank if they have heard of them or check with the Financial Services Authority that they are a genuine company.

Make sure their email address is not a hotmail or webmail account. If they are called escrow55.com then their email addresses should end .com. Check they have a UK landline number- is it listed in the phone book or on www.yell.com

Are they listed at companies house www.companieshouse.gov.uk - all UK limited companies have to be registered here. If they are a company based abroad, why take the chance! Our advice would be to just avoid them.

< back

Terms & Conditions

Please ensure that you read our Terms & Conditions page.