Escrow companies robbing online shoppers of money

[img_assist|nid=7986|title=|desc=|link=none|align=left|width=100|height=75] Scammers in Hawaii invent new methods to rob online consumers of their money. Scammers pose as fake escrow companies to have online shoppers to pay them for the purchases.

Usually escrow fraudsters resort to their tricks together with an online auction or Web site with classified ads. A customer who makes an expensive purchase is offered to use a specific third-party escrow company to "protect" both the buyer's and seller's interests. Then a buyer is advised that the escrow company requires a wire payment through Western Union or MoneyGram. Finally after money has been wired customer receives no purchase and never hears from the seller or bogus escrow service again.

"Legitimate escrow companies in Hawaii and on the Mainland create a safe environment where both the buyer and seller feel comfortable exchanging money and goods knowing they can't be taken advantage of," said Dwight Kealoha, CEO of Hawaii's Better Business Bureau (BBB), in a statement. "Unfortunately, scammers have realized they can cash in on this type of transaction by creating a facade of trustworthiness as an escrow company."

Shoppers are warned by the BBB to be more cautious when using escrow services, check with the BBB and the escrow company first and confirm that the escrow service is licensed and bonded with the appropriate state agency. According to the bureau a legitimate escrow site will not ask to do a person-to-person money transfer using Western Union.