Many consumers rely on classified advertising Web sites to find jobs, places to live, and other products or services. These sites foster mainly friendly and trusting online transactions. Most users adhere to and respect the terms and policies; unfortunately, these sites are also subject to great abuse by scam artists.
Sites like Craigslist allow independent parties to anonymously post online advertisements; meanwhile, most sites hold no liability if a transaction goes awry.
With billions of transactions facilitated, satisfied consumers are the majority; far outweighing the number of scam victims and disgruntled customers. To reduce incidences of fraud, consumers should recognize the most common scams found on these sites:
Bogus Opportunities: The crook pretends to be a legitimate employer, landlord or property manager as an elaborate lure to steal the applicant's money or identity. It typically starts with a misleading advertisement, which does not match the job description or the available property. Con artists use forged ads and falsified application forms to try to coerce applicants into divulging personal information, such as bank account or Social Security numbers. In rental fraud situations, they even collect the victim's deposit or first month's rent.
Overpayment Scams: The "prospective buyer" responds to the ad and sends a check or money order in the mail. The amount on the check over-pays for the cost of the item. Then there are instructions to wire the difference back to him/her, or to a third party. The check or money order is probably fraudulent or counterfeit, costing the victim the amount wired and the insufficient fund fees from the bank.
False Certifications: Looking for payment protection? The fraudster sends an official looking e-mail that appears to come from the staff of Craigslist, Angie's List or BBB, offering a guarantee, certifying a seller, or providing payment services. In actuality, none of these sources will ever send e-mails soliciting a role in the transaction.
Your Better Business Bureau serving Alaska, Oregon, and Western Washington provides advice for online shoppers:
Be careful with anonymous online transactions. When doing business on a site you trust, don't necessarily trust the ads you see from third parties. On many sites, advertisers do not have to pay a fee or fill out an application to browse, post an ad, or initiate an online transaction.
Verify legitimacy. Visit www.bbb.org to check out a BBB Reliability Report.
It is best to deal locally. Be on guard for bids or inquiries from potential buyers from far away, perhaps even in another country.
Be sure to thoroughly review all disclaimers and policies prior to doing business. Do not provide sensitive, personal information until the legitimacy of the opportunity has been verified. If you do not want the company to sell or redistribute your information, double-check their Web site's privacy policy.
Exercise extreme caution when applying for any online opportunity. Research the company and ask for references prior to submitting an application. On a resume, it is normal to provide your name, address, phone number, and e-mail address. Never provide your Social Security number, Driver's License number, or credit card and bank account numbers on a resume. Use discretion: Only fill out home rental applications in person after you have physically toured the interior and exterior of the property.
Steer clear of overly enticing deals. It is a warning sign when prices are too low or far below market value. Look out for those who claim that they can "guarantee your transaction."
Avoid wiring payments through Western Union, Money Gram or another wire service. Be extremely skeptical of sellers who demand that funds be wired or transferred to an account or a third party business source outside of the sale. Beware if you receive a payment that is higher than the cost of the item; evade any request where the remaining funds need to be wired or transferred back to the "buyer" or to a third party business associate, shipping agent, or online escrow service.
Keep in mind that payment options may be limited since most sellers can not process credit card payments. Never give out your bank account number or other confidential financial information to an unknown source.
Take precautions to protect yourself. Since many online transactions are completed in person—such as a direct cash/merchandise exchange—always meet in a public place and don't go alone. If a local buyer or seller is unwilling to complete the transaction in person, it may be a warning sign.
About your BBB serving Alaska, Oregon and Western Washington:
Your Better Business Bureau is a not-for-profit organization funded by Better Business Bureau Accredited Businesses. The BBB's mission is to be the leader in advancing marketplace trust. For more information about the services and products provided by your BBB, call 206-431-2222 or 253-830-2924 in Washington, 503-212-3022 in Oregon, 907-562-0704 in Alaska, or visit our Web site at www.bbb.org.