False escrow services

Users should be aware of fraudulent escrow services that are currently operating on classified sites across the internet.

A legitimate escrow service is a company that holds money during a purchase until the goods are received by the buyer. When the buyer has accepted the delivery, escrow pays the seller.

However, fraudulent escrow services are operating which appear legitimate but are run by fake "sellers" resulting in the buyer losing their money and never receiving their goods. The "sellers" place false adverts for products with an unusually low price to grab the buyer's attention. When the buyer enquires they are sent a standard reply, which often states that they will pay the shipping costs and suggests using a particular escrow service that the seller has used on a number of occasions.

The escrow site may feature false license numbers, logos and Copyright details which make the site appear genuine. It may also include a mobile phone number disguised as a foreign landline. However, after money has been sent to these false sites or sent to the "seller" on the request of the escrow site the buyer will have no fixed details and cannot be traced. Any email used will be free and web-based and therefore untraceable and mobile numbers will be changed.

A legitimate escrow site would never send you an email telling you to send your money or product directly to the other party; they would ask you to make the payment to a corporation. They will not tell you to wire payment via Western Union either as this is not a traceable procedure.

If you are suspicious of an escrow service, search for the escrow's company name with a search engine - a legitimate escrow service will have a number of results listed but a newer fake escrow site will have few. Be cautious if you log onto a site which does not say "https://" at the start of the URL and the padlock icon does not appear at the bottom of your screen. This means that the site is not a secure site.

· Avoid escrow services that have a dash in their name, a ".org" ".biz" ".cc" ".info" or ".us"

· Ensure that the escrow website has both an address and a landline phone number for the company. Try the phone number and make sure you get to talk to someone. If all you get is a fax tone or answer phone message then it is probably fraudulent.

· Also try the escrow's company email address; if they don't respond do not send them any money.

If you want to check out the bona fides of a company you can contact Companies House or the Financial Services Authority.

Important links

List of False Escrow Sites
Consumer Direct
Financial Services Authority
Companies House
Trading Standards
National Criminal Intelligence Service
Police links
Metropolitan Police Fraud Alert
Report an unscrupulous dealer: enquiries@autotrader.co.uk
Report a scammer: fraud.alert@met.police.uk

Please do not email the Metropolitan Police unless you have details of the fraudster's bank details, address or telephone numbers. Also bear in mind that the Metropolitan Police covers the Greater London area. For help across the rest of the UK, please contact your local force.