Fake escrow companies pose a significant threat to sellers and buyers, but most people have no idea how to avoid them or even what they are. According to recent FBI statistics, fake escrow companies are one of the most dangerous scams. These companies claim to help get money from others and often make you believe that your money is locked in before any transactions occur.
Fake escrow scams are legal and legitimate businesses that sell fake real estate escrow services to unsuspecting people around the globe. These scams take advantage of the fact that most people don’t understand what an escrow service is or how it works.
HOW DO I SPOT A FAKE ESCROW COMPANY?
Spotting a fake escrow company can be challenging, as scammers can be skilled at creating deceptive websites and posing as legitimate businesses. However, there are several red flags and precautions you can take to help identify potential fake escrow companies. Here are some tips you need to know to determine a fake escrow company.
- It is not necessary to use a particular escrow website.
Not all companies that have a website are legitimate. Be careful about sellers who force you to use an escrow account for a transaction. You should examine the website first before agreeing to it.
- Contact their customer service hotline.
Scammers make fake websites in a rush; some of their essential information is either lacking or false. One technique to spot a fake escrow company is to call their customer service hotline. If there is no one on the other line, it is a warning that the company is a fraud. You should not proceed with the transaction if the website has no number or address.
- Observe the payment process
An authentic escrow company will ask you to connect your money from your bank to their company’s bank. They will provide you with an account number and a routing number. Consider it a fraudulent scheme if they tell you to give money to a person rather than the company itself, or maybe they ask you to make a payment using a person-to-person money transfer.
- Be attentive to imitators.
Fraudulent escrow companies will sometimes use a company name almost the same as the original to deceive their victims. Ensure you input the correct URL and come up with the right website. Watch out for companies that say they are part of another company. Make sure to always use or make a transaction to the original company.
- Avoid it when the company emphasizes “safe” and “secure.”
Fraudulent escrow companies put too much emphasis on the words “safe” and “secure.” Also, avoid websites that end in the following extensions: .org, .cc, .biz, .bz, .US, and .info. When someone recommends a fraudulent escrow website, stop doing transactions with them.
- Check the endorsements listed on the escrow website.
Using photos of endorsements is as simple as posting them on a fake website. You should verify all endorsements and credentials of the company before building connection and trust. Check the escrow company if it is registered and verified.
A lot of people are worried and anxious when they consider hiring an escrow company. They are also scared by the thought of losing their money and stuff because of a scammer that exists. With all these factors in mind, you should know how to go about conducting your own research before hiring an escrow company for your business.
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