40 Fraudulent Escrow Web Sites Shutdown by CarBuyingTips.com

    FORT LAUDERDALE, Fla.--June 23, 2003--

    Fraudulent Escrow Sites Pose as Sellers and Buyers in Elaborate
    Auction and Classified Ad Scams, Duping Victims Out of Thousands

    Consumer advocate site CarBuyingTips.com warns consumers of fraudulent escrow sites trolling online auctions and classifieds, defrauding consumers buying or selling cars, cameras, or computers.
    Scammers setup hundreds of fake escrow sites using stolen IDs, credit cards, and Yahoo email. Then they post auctions using hijacked eBay accounts and car classifieds. The ads lure victims with lower prices, and free worldwide shipping. The "sellers" urge unknowing buyers to "use this trustworthy escrow site." Once victims wire cash to the escrow site, they never receive product and lose all their money. The site shuts down after their ISP accrues complaints, or when CarBuyingTips.com investigators compile evidence and get them kicked off the Internet, saving hundreds of potential victims.
    "The fake escrows look professional and convincing," said Jeff Ostroff, President & CEO of ConsumerNet, Inc., which runs CarBuyingTips.com. Ostroff said, "Our investigations revealed phony escrow sites list fake domestic or overseas addresses and non-working phone numbers which victims never verify. We saved a visitor $28,000 on a Porsche listed on AutoTrader, when the seller insisted he use SafeAutotrader.com, a now defunct escrow fraud. We are more effective than the police and FBI, shutting down 40 escrow sites in June." According to Ostroff, "The fake escrows are not secure sites. If you enter your credit card, they use it to fund other fraudulent escrow web hosting accounts. People use the same logins for many accounts, that's how they hijack your eBay account. We caught some advertising in major search engines and had them kicked out."
    Some sites steal content from Escrow.com, to appear legitimate. Over 90% of escrow web sites are fraudulent. Many sites illegally use TRUSTe and Verisign logos, typically using "Safe" or "Secure" in their site name.
    According to Ostroff, once you send cash through Western Union, it's gone. Legitimate escrows use bank to bank wire transfers. You should avoid sellers touting unknown escrows, or those with dashes in their name. Details and screen shots of escrow frauds, counterfeit cashier's check scams, Nigerian scams, and tips for avoiding them are found at http://www.CarBuyingTips.com.