Fraudsters discovered the Internet as a new playground. Simple precautions can minimize the risk of falling into their traps.
Sensational offers on the Internet should raise not joy but suspicion. The same applies when someone from Nigeria or California suddenly shows interest in used goods that are offered on a domestic platform. Such things often happen with criminal intent, as many complaints that the European Consumer Centre Austria (ECC) receive, show.
Unbelievably cheap
A consumer turned to as because her daughter ordered several dirt-cheap iPhones from a British company. The payment should be handled via a cash transfer service. The daughter brought 400 Euro on the way, but instead of delivering the phones, the parcel service demanded the payment of customs duties. This was the moment when the daughter became suspicous as there are no customs duties within the EU.
Reverse a payment
Too late, the money was gone. If you pay online purchases with credit card, in case of fraud it is possible to reverse the payment at the credit card company. Note: You are not legally entitled to this so called "chargeback"! Regarding Western Union or other cash transfer services, there is no way to get money back that was already sent. In any case, you should report the fraud to the police.
Untrustful trustee
Regarding Internet auctions, escrow services are often used to forward purchase prices. But there are many black sheeps.
A consumer told us that she placed an offer on eBay: "A buyer contacted me and suggested an escrow company for the financial transaction." She sent the goods to the buyer. And waits for her money ever since.
The suggested escrow service was operated by fraudsters who cooperated with the alleged buyer. Similar cases might happen to buyers who transfer money to fraudulent escrow services - they never receive the ordered goods.
Suggest escrow service yourself
Professionell Internet auction operators like eBay only suggest their own escrow services. You can also suggest a trustworthy service to your business partner.
Professionell escrow services have a bank account. Cash transfers mean that the money is gone! When it's an unknown escrow service, you should check on the website if a full company name, address (not just a post box!) and phone number is provided.
Bounced cheque
Another fraud model is "payment per cheque", where cash transfers also play an inglorious role. "Konsument" reader Mr. Erik S. advertised his car on an Austrian online platform. A professor from California contacted him via mail and showed big interest. When the American offered to pay a lot more than the actual price per cheque, Mr. S. became sceptical. The difference should be transfered in cash by a Greek carrier in order to pay for freight charges.
Our reader researched online and then refrained from the deal. Behind the professor hides an international group of fraudsters. When the seller of the car wants to cash the cheque, it turns out to be bounced.
The fictive bank
Mr. Stefan D. had offered several cameras and mobile phones on an Austrian Internet flea market. A man with the sounding name Angel Martín-Portugués Salgado contacted him. Mr. D. found him online via a search engine and therefore believed that he really exists. The fraudster misused the name of the well-known American bank institue "Citibank".
Transfer didn't work
The trick is similar to the one described above. They offered Mr. D. to highly overpay for his products. He was told to transfer the difference between the offered amount and the actual price to the son of Mr. Martín-Portugués Salgado who allegedly currently was in Nigeria. Repeatedly, Mr. D. got the notice that the transfer had not worked.
No existing identity needed
To solve this, the fictive Citibank wrote in poor German, Mr. D. should transfer additional amounts to Nigeria. He would then become the purchase price plus the already transferred money. We told Mr. D. to turn to the police. What the search engine found when Mr. D. entered the name "Angel Martín-Portugués Salgado", was a Facebook account that can easily be created with any name regardless of the true identity.
Alleged lawyers
Even if you're not selling or buying anything online, you might meet fraudsters. Austrian consumers got mails from alleged lawyers. The "KUW lawyers" accused the consumers of copyright violations due to downloading of pornographic material.
The offer
The lawyers then offered: "To avoid inspections of the public prosecutor and other inconveniences like house searches and court hearings, we allow you to pay damages to our client anonymously. If you pay anonymously, our client guarantees you that he will tell the public prosecutor that damages were claimed by mistake and that all claims should be dropped."
Short: The consumer should pay 100 Euro per Paysafecard in order to avoid problems.
Speculating with a guilty conscience
The fraudsters speculate with the guilty conscience of those who sometimes visit porno websites. A law office that actually was called "KUW lawyers" was closed down years ago. The public prosecutor of Essen (Germany) is investigating against the sender of those mails.
How to protect yourself - important tips:
- Identify your business partner: Does the company have a website? Do they provide information like their exact company name, address and phone number? How can you contact them? Does someone pick up the phone or is it just a tape? Are there any warning forum entries about this company or person? Don't trust buyers from far away. You can check Internet addresses at "Whois" of the worldwide Internet Registration Administration. If you enter the URL, you get information about where it is registrated.
- Unsolicited mail advertisments are forbidden and no sign for a professionell company. Promises made in mails usually can't be verified.
- Price: If products are offered to a much better price than in the regular shops, you should be sceptical. This could be an indication for fraud, especially if paying in advance or payment via cash transfer is requested. Some bargains may be counterfeit products (product piracy).
- Never pay in advance: Ideally, the ordered goods come with a delivery note or per cash on delivery. Or you can pay via credit card over an encrypted Internet connection (recognizable by the little padlock on the bottom of the site). Beware of escrow services as there are many fraudsters.
- No cash transfer: Never send money with a cash transfer service to foreigners! If it's fraud, your money is lost.
