Escrow Fraud

Escrow is a legitimate financial arrangement where a neutral third party holds funds until both sides of a transaction fulfil their obligations. Scammers exploit the trust associated with escrow by directing victims to fake escrow websites that mimic real services, or by hijacking communications between genuine parties and inserting fraudulent payment instructions.

In property and vehicle sales, fraudsters may pose as the escrow agent or redirect the buyer to a lookalike site. The buyer deposits funds believing they are protected, but the 'escrow' is operated by criminals who disappear once the money arrives. Sellers can also be targeted — asked to release goods or sign over property based on fake confirmation that funds are 'held' in escrow.

Escrow fraud is particularly common in high-value online sales of cars, boats, and domain names, as well as in real-estate transactions. Always verify escrow companies independently using contact details from official sources — never from links or details provided in an email.