What is eBay's new position on escrow services?
Until now, eBay has recommended the use of a escrow as the preferred option for transactions priced higher than $500. Unfortunately, the number of fraudulent escrow sites has grown dramatically over the past year. At any point in time, there are probably dozens of "spoof" escrow sites stealing money from buyers and enticing sellers to ship items when they'll never see the money. In order to combat fraudulent escrow sites, eBay has taken the following actions:
- We are urging both buyers and sellers to be more vigilant about the use of escrow. If they choose to use an escrow service, we recommend they use www.escrow.com, the only eBay.com approved escrow site.
- We are removing all references to escrow on the Sell Your Item (SYI) pages. Escrow is used in a small number of transactions and information about escrow [link to escrow landing page] is available through our Help system.
Why is eBay changing its position on escrow and its use in eBay transactions?
There are three reasons we're making this position change on escrow and its use in eBay transactions: 1) escrow is used in only a small number of eBay transactions; 2) there is a growing number of fraudulent escrow web sites; 3) the Sell Your Item page is being redesigned to be easier to navigate.
By warning our users about the risk posed by fraudulent escrow sites and suggesting a viable option for escrow transactions (www.escrow.com), we are empowering our members to trade more safely on the site.
How do buyers get scammed by spoof escrow sites and what can they do to prevent falling victim to them?
Buyers can get fooled by scammers posing as legitimate sellers who claim that they'll ship an item once a buyer sends money (typically instant money transfer) to a spoof escrow site. Once the transaction is complete, the "seller" will claim to have fulfilled their end of the agreement and shipped the item. The reality is that there is no item and once the buyer wires their money to the spoof escrow site, that money is gone for good.
To prevent falling victim to a spoof escrow site, buyers should not respond to sellers' requests to use any escrow site other than www.escrow.com. If the seller is legitimate and is amenable to using escrow, he should have no problem with using www.escrow.com, eBay's only approved escrow service provider.
How do sellers get spoofed by spoof escrow sites and what can they do to prevent falling victim to them?
Sellers can get fooled by scammers posing as legitimate buyers, who claim to have sent money to an escrow service. These fraudsters may e-mail or call the seller with a spoof escrow Web address. Upon visiting the spoof escrow site, sellers may type in personal information and get access to a false account which shows a cash balance for "received payment." Seeing the cash is in the account, the sellers then ship the item to the buyer. The reality is that there is no cash in the account because the site is fraudulent. Regrettably, sellers who fall victim to this scam, will not receive payment or recover their lost item.
To prevent falling victim to a spoof escrow site, sellers should not respond to buyers' requests to use any escrow site other than www.escrow.com. If the buyer is legitimate and truly wishes to use escrow, he shouldn't have any problem with using eBay's only approved escrow service provider, www.escrow.com.
How can I identify a spoof escrow site?
It is very difficult to identify a fraudulent escrow site (the scammers have gotten very clever and creative in their construction of these sites). That's why we believe it is best to use www.escrow.com, the only eBay-approved online escrow service Remember, the safest approach is to type the entire address (www.escrow.com) in your browser's URL field. Don't allow windows to "auto-complete" the Internet address in the browser. Type it out in its entirety. Also, be sure never to respond to e-mail from "escrow sites/services" requesting personal account or identification information - this is a common request from fake escrow sites that use the information to access your personal accounts illegally and defraud you of your money/assets. Escrow.com (www.escrow.com), eBay's only approved escrow service, will never request personal account information via email, nor will it deliver payment instructions or ask you to deliver merchandise via email.
What options does a member have to make a higher priced transaction?
For items over $500, should you choose to use escrow in the US, be sure to use www.escrow.com, the only eBay approved online escrow service. PayPal Buyer Protection offers up to $500 of coverage to eBay members who buy qualified items with PayPal.
How can I report a questionable escrow site?
If you receive an e-mail from a buyer or seller with a request to use an escrow service other than www.escrow.com, forward it to spoof@ebay.com. We'll investigate to see if it's real.
Am I covered by eBay or PayPal buyer protection programs in the event I've sent and lost money to a spoof escrow site for an item I won on eBay?
If you paid using cash or instant money transfer services like Western Union or MoneyGram, you will not be covered by eBay standard purchase protection program or PayPal Buyer Protection.
If you file using PayPal, you have up to 30 days from payment date to file a claim with PayPal.
If you paid using personal check, bank-to-bank (wire) transfer or credit card, you must file with eBay between 30 - 60 days after close of auction. If you paid with a credit card you must have already contacted your credit card issuer and sought reimbursement from the issuer prior to filing an eBay standard purchase protection claim.
Are there any eBay approved escrow sites for international transactions?
Yes. They are:
For www.eBay.au users:
Escrow Australia
For www.eBay.it and www.eBay.es users:
Escrow Europa
For www.eBay.de users:
iloxx Safe Trade
For www,ebay.fr, www.ebay.nl and www.ebay.be users:
Triple Deal
When will this change take place?
The change to the Sell Your Item page and our new escrow messaging will take effect the week of February 23, 2004.
Must use Buy It Now and PayPal.
