People have been using escrow services for decades without knowing it. An escrow is an account created by a broker to hold funds for the broker’s principal, or any other person, until completion or termination of your transaction with a third party. Believe it or not, the escrow process is currently used in automated teller machines (ATMs) and vending machines around the world. These machines hold cash until the completion or completion of a transaction between two parties, which they then keep or return depending on the outcome of the transaction.
Escrow services are also widely used on the Internet. Like its traditional counterpart, Internet escrow operates by placing money in the hands of an independent, licensed third party with the intention of protecting both buyers and sellers in a transaction. As soon as both parties validate the completion of the transaction, the money is released. If at any time disagreements arise between the parties, they are resolved through dispute resolution. The result will then dictate what happens to the money on deposit.
Those looking to buy or sell their wine collection can benefit from these services. But watch out for wine buyers and sellers; The Internet is full of bogus escrow services. A perpetrator of these schemes will typically suggest their unsuspecting victims use a third-party escrow service to facilitate a transaction. This persuades the party to participate. Unbeknownst to his victim, the perpetrator has already set up, as a ruse, an escrow site that closely resembles a legitimate escrow service. The victim sends the payment or merchandise to the fake escrow service company or the perpetrator, and only expects to receive nothing in return from the escrow site.
How can you protect yourself against escrow fraud? Use a licensed escrow company. These companies comply with the regulations imposed by state authorities. They are also required to post bonds so consumers can be sure they can get their money back if they lose it in the escrow process.
How can you be sure an online escrow company is licensed? Check with government authorities to see if they are licensed. There are numerous government databases online that allow you to search for companies that are licensed escrow services. For example, the following is a simple list of licensed escrow services located in Nevada: http://www.mld.nv.gov/EscrowAgentSearch.asp
Even if you’ve managed to research all of this, you may be approached by a wine buyer or seller who suggests using a third-party escrow service. You can use your choice of escrow service, but only if you have verified the authenticity of the escrow site. Who knows? They may know an escrow site better than you. By taking all these precautions, you can safely trade online.
