Tips To Not Become Escrow Scams VictimEscrow is an arrangement where an agent takes money from a buyer and pays it to the seller upon completion of condition(s) or delivery of a product by the latter. Escrow Scams have unfortunately destroyed the credibility of this arrangement which is based purely on trust. Escrow is a service based on trust. Escrow agencies or companies act as third party custodians of funds. They receive the funds from the buyer and hold them in trust. When the seller completes a task or delivers the promised goods to the buyer, the money is paid to the seller. The practice of Escrow is used successfully in on line auctions. I am sure you are familiar with the nature of the Internet. The almost complete anonymity of the internet is both a bane and a boon. You must have heard of phishing scams and email frauds. Escrow as a service has also been affected by unscrupulous scam artists. Lets take a quick look at how it works. Party A likes a car on an on line auction site. He contacts Party B who quotes a price. Party A agrees and the deal is finalized. Party A follows the advice of the auction site and decides to use an escrow service. He follows Party B's recommendation of selecting Party C as an Escrow Service. Party A wires the money to Party C. Party B and Party C vanish into the blue taking Party A's money and peace of mind. The situation sounds imaginary? A number of similar incidents have already occurred on on line auction sites. Here are a few tips to avoid becoming a victim of Escrow Fraud. Exercise caution in selecting an Escrow Service. If taking part in an on line auction, select the escrow service as per the recommendations of the web site conducting the auction. Never follow the seller's advice in selecting an Escrow Service. If the seller recommends one, it should ring alarm bells. Check Legitimacy of Escrow Service This is not really an easy task. If you use your wits and common sense coupled with research on the internet then chances are you will be able to select a legitimate escrow service. Calling up the customer service number gives you a chance to interact with the company. This can give you very useful information in making a decision. Make sure where your money is going to A legitimate escrow service will provide you with an account number and routing number. This shows that the service is a legitimate one. If you are living in the state of California then the Department of Corporations has a list of authorized Escrow Companies. Other states would also provide you with similar lists. I hope you would never become a victim of Escrow Scams following the above mentioned guidelines. |