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The fight against fraud in Internet auction
The fight against fraud in Internet auction
By Ulf Wolf
Cybercrime is back for 2007. Hardly news, of course, is no secret that this plague is spreading deeper and deeper in time.
And here's another startling news: a head of the pack, as last year: Internet Auction Fraud.
FBI Numbers
The Internet Crime Complaint Center (IC3), a partnership between the FBI and the National Center Collar Crime White (NWC3), recently released its 2007 figures on complaints received and referred to cyber crime police.
Once again, the numbers Internet Auction show that by far, the fraud was the most reported crime in 2007, which it did in 35.7% of all complaints. In addition, during the same period, non-delivery of goods and / or payment transactions online auction not accounted for another 24.9%, linking the combined total of online sales practice complaints fraudulent 60.6% of all Internet fraud.
Internet Auction Fraud
What is now most users do not realize is when something is bought through an Internet auction, do not purchase the auction house (eg eBay or Yahoo), but a person or company. The auction site, as intermediary, simply provides a forum where individuals can trade with each other, and generally takes "and prominently displays" a firm policy of washing hands all liability for any loss incurred from using your service.
Once the bidding has concluded the payment and delivery of goods bought and sold is negotiated between buyer and seller. If the item is not delivered after it is paid or not what was represented on the auction site, the auction house will not reimburse no money. It is for the buyer to approach the seller to negotiate a just and proper.
Legal guarantees they typically trade do not cover property acquired in an online auction. The seller's only obligation is to give clear title.
Therefore, keep the following in mind when These online auctions, or every time you buy something online, especially from a private party:
- Understand how the auction works, what their obligations as a buyer and the seller's obligations are before you bid;
- Find out what actions the auction house is if a problem occurs, and consider secure the transaction and shipment
- Note that if a problem occurs with the auction transaction, it will be more difficult decide whether the vendor is outside the United States, laws vary widely from country to country;
- Learn all you can about the seller, especially if the only information we have is an email address;
- Before making a payment for an auction purchase, you must verify the identity Contact and contact information in case there is a problem with delivery of the item;
- Ask the seller if delivery is to be expected and if the goods is covered by the warranty if necessary change;
- The use of registered or certified mail that allows monitoring to ensure elimination of claims the package was sent, but must have been "lost in the mail";
- Verify that the account information matches the auction email phone number and any other bank account and location information;
- Use feedback forum auction house check out the story the seller before agreeing to pay any money. Note however, that sellers sometimes people post positive information about themselves or organize others do so on their behalf.
And here is the most important tip of all:
- If you have any doubt about the integrity of an online auction by the seller and if you're not: use an escrow agent. An escrow agent or company is an independent third party has paid in trust until the buyer receives and accepts the item from the seller. While this service is charged a fee, which protects both the buyer and the third will money until the goods have been received in good condition, inspected and accepted, and only then to the seller.
Internet Escrow
The beginning and the Internet escrow process is the same as with the purchase and sale of real estate, where, of course, the escrow company is considered indispensable for the amounts.
- The buyer or seller opens an account with the online escrow company;
- The possible Buy an item send the payment by bank transfer, check or credit card company of the trust;
- The company custody verifies that the funds actually exist, or that the buyer is the one who represents himself to be and is in possession of credit card;
- Once the checks out, the escrow company asks the seller to send the goods;
- The merchandise is shipped and the seller claims tracking information;
- Once the site delivered the goods delivery as shown escrow company double checks for ensure that the buyer has the goods on hand;
- The buyer now has an agreed amount of time to accept or return the goods to the seller;
- Once accepted by the buyer, the escrow company releases the funds to the seller, net of transaction costs and commissions.
Simple enough. Yes, that is, it is an online company lawful custody.
Fighting game
But the world as we know, likes to throw us curves, and in this case the curve is in the form of escrow fraud.
Handling, as it does significant amounts of money, the escrow company is often a target of fraud, where similar phishing sites that try to deceive you use instead of the site in good faith, and the concept of escrow company itself is also flagrantly abused by criminals who created fraudulent escrow sites where money only traveling in one sense: you guessed it, away from you.
In fact, the problem of fake escrow sites online is so substantial that some escrow reputable sites and legitimate simply have thrown in the towel.
Buyer Guardian, for example, recently closed its doors due to Internet fraud steal your business, and published the following note on his site: "We are sad to report that after careful and lengthy examination that we made the decision to cease operations in BuyerGuardian.com. This is a very difficult decision, and that is mainly due to rapid growth of online escrow fraud. "
Many of these escrow companies, apparently in good faith, established for the sole purpose of enriching the prison, are created off-shore, especially in Russia or China, where lax cyber laws crime (and cooperation with the U.S. sometimes questionable or authorities) makes it harder to close the sites and prosecute the perpetrators to justice.
Intro: Escrow.com
In fact, Escrow.com entered this race, almost ten years ago during the dot-com boom and in recent years has proven to be the online escrow company they can use to secure and, unless the auction fraud and other online sales / purchase transactions with the credentials and to test endurance.
Licensed by the State of California as well as by States Idaho and Arizona, which require separate licenses-Escrow.com is the only company online escrow credentialed to serve all states Union, and who actually does 24 / 7.
While Escrow.com be responsible for operations of any size, you can not make financial sense to use them for low cost items from your transaction fee is $ 25, and the commission is $ 63 per $ 1,000 of value of the transaction if payment is by credit card and $ 32.50 per $ 1,000 wire transfer.
But if the value of your dream, it would be essential Escrow.com for any transaction of $ 250 on up.
Peace of mind
telecomclassifiedads.com based in Michigan, which buys and sells telecommunications switching equipment is expensive agree, it would be, according to Mickey Fivenson, complete transactions online without Escrow.com.
"I use Escrow.com for all transactions on my equipment, and without them we would not be in business. It's as simple as that.
"I deal with buyers and sellers on a daily basis who do not know each other and living in different parts of the world. Escrow.com is the only way to complete a transaction between them.
"As a result, after five years of doing business through Escrow.com I've never had anything more than satisfied customers."
Dave Kurka RPM Auto Sales Wholesale Pleasant Hill, CA could not agree more:
"Escrow.com provides a safety net for both the seller and the buyer, delivery security in an uncertain world.
"Most people understand the concept of security deposit, especially if you have bought and sold real estate in a jurisdiction that uses an escrow company instead of a lawyer to resolve a real estate transaction, in fact, we have modeled our transaction in the real estate transaction. Escrow.com has made this approach not only possible but also very effective.
"They are also very focused on customers, and thanks to their support we have been able to integrate the opening of an escrow account with them in our own hosted web application, CRM software allowing us to speak directly with your database on a secure link.
"In fact, the only game in town. We have sought other companies, and anyone else height. "
"Detective Escrow.com
While Escrow.com is increasingly seen as the Internet company escrow to turn to for peace of mind of electronic commerce, its staff, on a daily basis, also hunt and diligent working to close fraudulent impostors, who are current.
And spring up like mushrooms, these impostors: there are days when the staff discovers Escrow.com up to ten new sites.
A couple of samples of intelligent fraud can be found (if it still until the time of printing) in the safe-wayonline.com and holdings.net escrow, "which have been confirmed as illegal. By the way, you can not blame these criminals for lack of professional design.
The good news is that as these sites are located, authorities are on alert and the sites are off the air soon.
eBay Weighs In
To quote the largest auction site of them all, eBay:
Pay safely – beware of fake escrow services when considering the use of pay for your eBay item.
For eBay transactions, you must use only approved eBay Escrow Company: Escrow.com.
A avoid being deceived by fraudulent email from a fake escrow service, you should visit the Web site of escrow service to verify the information you received by email.
Make sure to type the complete Web address (for example, www.escrow.com) in your Web browser. Do not let your web browser auto-complete Web address for you. The error can autocomplete a fraudulent Web address.
Learn more about escrow: http://pages.ebay.com/help/confidence/payment-escrow.html
Escrow.com-The House Name
More important, however, as Escrow.com gains more and more recognition on your way to becoming a household name, it becomes harder and harder for fraudsters to defraud the public for the excellent reason that no are Escrow.com, the only name you know you can trust.
Here for peace of mind and a night's sleep.
Coeur d'Alene, Idaho-based Ulf Wolf writes about crime for the words and images (ulf@words-images.com)
About the Author
Coeur d’Alene, Idaho-based Ulf Wolf writes about cybercrime for Words & Images (ulf@words-images.com)