Escrow Fraud

[fisicx]

I’ve been offered a large sum of money for one of my plugins. It’s not worth anywhere near the amount offered but I’m not going to turn down stupidity.

They are paying via escrow.com. All seems legit but at some point I’m going to have to transfer ownership of the plugin.

What are the chances of them pulling the money from the escrow account?

What are the chances this is fraud or money laundering? Or even a scam?

 

[ctrlbrk]

What are the chances this is fraud or money laundering? Or even a scam?

Are there legitimate reasons for the buyers to be using an escrow service as opposed to negotiating a deal directly?

 

[fisicx]

No idea. Which is why I thought I’d ask the question.

 

[WaveJumper]

Are you able to supply the plugin but hold back a ‘key’ or even have a time limit built in so they either get the key once you have cleared funds or in a week the free access is terminated. Is the client Uk based or overseas

 

[Frank the Insurance guy]

I think if it is a genuine escrow account, then you should be ok. From my understanding a true escrow account is an account held in trust by an independent third party. The money is held in trust and only released once the contractual obligations by both parties has been completed.

 

[fisicx]

That’s what I thought. The website is genuine and trusted and the money has been deposited. It’s just the amount.

You could build the plugin for under £200. They want to pay me $1500. All I can assume is they want a plugin that has already been accepted by WordPress.

 

[fisicx]

Are you able to supply the plugin but hold back a ‘key’ or even have a time limit built in so they either get the key once you have cleared funds or in a week the free access is terminated. Is the client Uk based or overseas

That’s what has happened. They have a copy of the code (because it’s a freebie anyone can have) but no access to the repository until the funds have cleared.

 

[Paul Kelly ICHYB]

Can you get the money and then release the repository or is it release the repository and then funds released?

BTW, they don't know how much it costs to build - maybe they want a proven plugin written by a reputable coder?

 

[UK Contractor Accountant]

had this with one of clients who was offered large sum of money for some worthless Carbon Credits what he was sold. Wanted pay into a Escrow account in $. Had a flashy website & checked out at Companies House as a company with large Reserves.

Turned out to be part of a 'boiler room' scam.

 

[Paul Kelly ICHYB]

Do they resell the carbon credits?

 

[fisicx]

It says:

"Payment received and is under review

We have received the buyer's payment. Please wait until we approve the payment before initiating the domain name transfer."

It's not a domain name transfer but that's incidental.

Right now everything screams 'scam' but just can't work out where it is.

 

[Paul Kelly ICHYB]

It seems clearance should be pretty quick:

How quickly are incoming payments processed? - Escrow FAQ - Escrow.com

Wire Transfers: It depends upon your financial institution; some require a few hours or even a few days before they can wire funds. Upon receipt we process wire transfers immediately.

www.escrow.com

If it walks like a duck........

 

[cjd]

Possible money laundering - they decide it doesn't work/don't want it, ask for refund.

And/or payment into escrow may be fraudulent - stolen credit card (or was it bank transfer?) Takes a month or two for chargeback to catch up.

 

[cjd]

Bing AI

Escrow is a financial arrangement where a third party holds and manages funds or assets during a transaction between two parties. While escrow services are commonly used for legitimate purposes, there are indeed scams associated with them. Here are some common escrow fraud schemes to be aware of:

1. The Seller Spoof:
   • Fraudsters pose as the seller and email the settlement agent using an address that appears legitimate.
   • They attempt to divert seller proceeds to a fraudulent account1.
2. The Late Switcheroo:
   • The settlement agent receives initial wire instructions from the seller.
   • Just before closing, the agent receives a message (often via email) from an address resembling the real estate agent’s.
   • The fraudulent message instructs the agent to wire the sale proceeds to a different, fraudulent account1.
3. Earnest Money Hustle:
   • The settlement agent receives an email that appears to be from the real estate agent.
   • The fraudster instructs the agent to release the earnest money deposit back to the alleged client, directing funds to a fraudulent account1.
4. The Buyer Beware:
   • Fraudsters pose as the settlement agent or real estate agent, using an email address that looks legitimate.
   • They instruct the buyer to wire their down payment funds to a fraudulent bank account1.
5. Third-Party Pooper:
   • In transactions involving third-party investors receiving seller proceeds:
   • The fraudsters impersonate the investor, using an email address resembling the investor’s, and provide fraudulent wire instructions to the seller1.
6. Escrow Fraud via Email:
   • Cybercriminals hack email accounts of real estate agents or other parties involved in transactions.
   • As the closing date approaches, they pose as one of the parties and seek to change wire instructions.
   • These fraudulent communications often come via email but can also occur via telephone or fax2.
7. Bogus Escrow Services:
   • Scammers set up their own escrow service, plant positive reports about it, and suggest its use to buyers.
   • Buyers unknowingly make payments to this supposedly neutral third party, which is actually linked to the seller3.

Remember to exercise caution when dealing with escrow services. Verify the legitimacy of the escrow company, especially if you’re unfamiliar with them. If in doubt, seek professional advice and report any suspicious activity promptly! ???

 

[Paul Kelly ICHYB]

Maybe speak to escrow.com for their assurance - if payment was by CC and there is a chargeback, what happens next!

 

[UK Contractor Accountant]

Do they resell the carbon credits?

they were worthless- Crabon credits values were overinflated in the first place. Directors went to prison for this scam.

 

[DontAsk]

Bing AI

Escrow is a financial arrangement where a third party holds and manages funds or assets during a transaction between two parties. While escrow services are commonly used for legitimate purposes, there are indeed scams associated with them. Here are some common escrow fraud schemes to be aware of:

1. The Seller Spoof:
   • Fraudsters pose as the seller and email the settlement agent using an address that appears legitimate.
   • They attempt to divert seller proceeds to a fraudulent account1.
2. The Late Switcheroo:
   • The settlement agent receives initial wire instructions from the seller.
   • Just before closing, the agent receives a message (often via email) from an address resembling the real estate agent’s.
   • The fraudulent message instructs the agent to wire the sale proceeds to a different, fraudulent account1.
3. Earnest Money Hustle:
   • The settlement agent receives an email that appears to be from the real estate agent.
   • The fraudster instructs the agent to release the earnest money deposit back to the alleged client, directing funds to a fraudulent account1.
4. The Buyer Beware:
   • Fraudsters pose as the settlement agent or real estate agent, using an email address that looks legitimate.
   • They instruct the buyer to wire their down payment funds to a fraudulent bank account1.
5. Third-Party Pooper:
   • In transactions involving third-party investors receiving seller proceeds:
   • The fraudsters impersonate the investor, using an email address resembling the investor’s, and provide fraudulent wire instructions to the seller1.
6. Escrow Fraud via Email:
   • Cybercriminals hack email accounts of real estate agents or other parties involved in transactions.
   • As the closing date approaches, they pose as one of the parties and seek to change wire instructions.
   • These fraudulent communications often come via email but can also occur via telephone or fax2.
7. Bogus Escrow Services:
   • Scammers set up their own escrow service, plant positive reports about it, and suggest its use to buyers.
   • Buyers unknowingly make payments to this supposedly neutral third party, which is actually linked to the seller3.

Remember to exercise caution when dealing with escrow services. Verify the legitimacy of the escrow company, especially if you’re unfamiliar with them. If in doubt, seek professional advice and report any suspicious activity promptly! ???

More verbal diarrhoea form AI. Did you even bother to proof read it?

We have "estate agents" in the UK, not "real estate agents" and they do not use escrow. They do not even handle the funds in a property transaction at all, that's what the conveyancers do.

There have been cases of fraud where conveyancers, or individual purchasers, have been convinced to send funds to the wrong account at the last minute, but they are nothing to do with escrow.

 

[cjd]

More verbal diarrhoea form AI. Did you even bother to proof read it?

Did you consider responding in a less rude and aggressive manner?

The question is about whether escrow can be scammed. Well apparently there are plenty of escrow scams. One of which involves real estate agents.

 

[TeaTime]

More verbal diarrhoea form AI. Did you even bother to proof read it?

We have "estate agents" in the UK, not "real estate agents" and they do not use escrow. They do not even handle the funds in a property transaction at all, that's what the conveyancers do.

There have been cases of fraud where conveyancers, or individual purchasers, have been convinced to send funds to the wrong account at the last minute, but they are nothing to do with escrow.

I will need to ask you to be politer in your messages. There is no need to be so aggressive to other users.

 

[NickGrogan]

$1500 seems a bit low for a scam, is there anything else in they'd get with the repository that's wrth anything?

 

[DontAsk]

Did you consider responding in a less rude and aggressive manner?

I didn't think it was that bad. All I asked was whether you read the AI response. The first phrase was directed squarely at the AI, not yourself.

The question is about whether escrow can be scammed. Well apparently there are plenty of escrow scams. One of which involves real estate agents.

See my original response. This is UK group.

 

[fisicx]

$1500 seems a bit low for a scam, is there anything else in they'd get with the repository that's wrth anything?

Wordpress Repositories are siloed. If you have 10 plugins and transfer one of them to a new owner they only get access to that one plugin.

And I agree $1500 isn't worth a scam.

But I had an email from them. They made the payment to escrow.com using a creditcard. Which is why all the red flags started waving.

 

[japancool]

One of which involves real estate agents.

Well, a lot of it seems to involve fraudsters pretending to be those same agents, so it's really about fake estate agents!

In this context, I suspect "real" means "legitimate". They're called "realtors" in the US, so "real estate agent" isn't a term you normally come across in English (I have no idea what they're called in Canada or Australia).

 

[NickGrogan]

Escrow.com verifies all payments. Once we confirm the funds are good, we will inform you that it’s safe to deliver. As the Seller, you’re also protected from any unexpected chargebacks, thereby ensuring that you won’t fall prey to a scam.

Seems like it's not a problem even if they chargeback

 

[eteb3]

In this context, I suspect "real" means "legitimate".

Nah. It’s another name for realtor:

Definition of REAL ESTATE AGENT

a person in the business of selling land and buildings… See the full definition

www.merriam-webster.com

Kinda with DontAsk on this one: the AI was all about technical processes of land sales in the US, but the frauds are all familiar from land sales in the UK.

 

[Dinky]

Wordpress Repositories are siloed. If you have 10 plugins and transfer one of them to a new owner they only get access to that one plugin.

And I agree $1500 isn't worth a scam.

But I had an email from them. They made the payment to escrow.com using a creditcard. Which is why all the red flags started waving.

How did you get on fisicx? I wouldn't worry about them using a credit card as most likely they just wanted the cashback (up to 3% in the US!), and it appears escrow.com will cover any possible chargebacks.

 

[fisicx]

I really should have come back sooner. Apologies for this.

Everything went very smoothly. The money was paid in, I transferred the plugin and Escrow paid the money into my bank. A very simple process.