Car, Motorbike, Electronics Shoppers at Most Risk of Escrow Fraud
SYDNEY, May 9, 2013 – The number and scale of escrow scams are expected to grow in June, according to Bitdefender®, the award-winning provider of innovative antivirus solutions.
The company’s analysis on the last 10 months that fraudsters put more energy into creating fake escrow websites at the beginning of winter. More than 16.8 per cent of the escrow scams registered in almost one year were created in June.
A similar spike was registered in February this year, with over 17 per cent of the total number of analysed escrow scams. After a steady decrease from July to October, the number of fake escrow companies starts to grow before the holidays, especially in December.
Cars, motorbikes and electronics top the list of items that scammers use most to swindle online shoppers in the growing underworld of escrow fraud, a Bitdefender study on over 2,000 fake escrow websites shows.
Scammers generally pose as sellers on authentic auction websites, then direct buyers to the fake escrow service they control. The scammer takes the money and never delivers the goods.
“The scammers can be quite convincing – that’s precisely how they can make money,” said Bitdefender Chief Security Strategist Catalin Cosoi. “They put a great deal of effort into coming across as legitimate, even to the point of warning their targets to protect themselves from credit card and payment fraud. A typical statement seeking to reassure their victims is that they never request banking details – it actually makes no difference with escrow fraud.”
Here are the Top 5 Items Scammers ‘Ship’ to Neverland:
- Cars
- Motorcycles
- Electronics
- Items of special value
- Bikes
Other items ‘transported’ by escrow scammers include bank deposits, medical records and tissue samples.
Before making any payment online and using an escrow service to ‘secure’ the transaction, check WHOIS information for clues about the domain registration, hosting and online activity. Unlike real sites, more than 90 percent of the fake escrow websites are registered for just a year, and use e-mail addresses such as contact@privacyprotect.org to remain anonymous.
Another sign is that real escrow websites use secure server connections (SSLs) to protect customers, so “https://” should appear in the address browser. Fraudulent websites may even ‘borrow’ the logo of SSL verification services such as Verisign, so users should check if the site is listed by the authentication company.
UK global redirecting numbers that start with +4470 may also reveal the presence of a scam. Though the country code may look British, the 70 prefix means the phone call will be redirected to any country but the UK.
Users should also check if the contact address of the website is located in the same country as its phone number.