Escrow Fraud Prevention Hotline

Services like Craigslist warn their users to be suspicious of any deal involving Western Union, Moneygram, wire transfer, cashier check, money order, shipping, escrow, or any promise of guarantee, especially when dealing across long distances.

Escrow reduces the potential risk of fraud by acting as a trusted third party that collects, holds and disburses funds according to Buyer and Seller instructions.  Legitimate escrow services are provided by a licensed and regulated escrow company.

• When to use Escrow: Escrow is well-suited for items purchased on auction sites, automobiles, motorcycles, domain names, jewelry, specialized computer equipment, and other high-ticket items.
• When to use another payment service: If you know and trust the other party involved in the transaction.

• Buyers receive and inspect the merchandise before the Seller is paid.
• Sellers receive their money if the Buyer accepts the merchandise.

Both parties agree to terms of the transaction, which includes a description of the merchandise, sale price, number of days for the Buyer’s inspection, and any shipping information.

The Buyer has a set number of days for an inspection and the option to accept or reject the merchandise.

The escrow company pays the Seller by the method selected by the Seller. The transaction is complete.