Be Careful of Scam Internet Companies

Be careful the next time that you use an escrow (or any) Internet company to secure your eBay transactions. An associate of mine showed me USA-Trader, which claims to be a leading escrow provider. However, the funny thing about the web site is that all of the business information has been stolen from EscrowTech, a legitimate company.

The web site (USA-Trader) has done everything possible to make the company look legitimate. They have the entity number, license type, and state origin right on the home page. They have a Lindon, UT address where the company is located. Yet, all of this information is actually related to EscrowTech. Another item that is meant to "legitimize" the company is the customer service phone number, which is actually a New York phone number. Or look at the secure connection certificate on the login page. The fraudsters have taken every effort to show people that they are a real company.

Defrauding people over the Internet is very easy. A rule of thumb is to only trust companies which are well established and that other people recommend. Yet, then you run into the pyramid-scheme technique of fraudsters where they intentionally build trust in current customers. That way, they can lure more people into the fraud. At USA-Trader, the first few transactions are run properly. Then, the third or fourth never goes through and suddenly all contact with the company is gone. An extremist would say to not do business over the Internet. But that is the direction of our economy. Just remember how easy it is to set up a web site, make up some information, rent a P.O. box, get a phone number, even get a security certificate. Take everything you read on a web site with some healthy skepticism, especially before sending your money to it.