False Storefront
Similar to the
Auction Fraud. Instead of using an auction site the fraudster creates an entire
site that appears to be legitimate. Payment is collected, but the merchandise
is never delivered.
It is very easy to set up a website with a polished, professional appearance.
The site may include shopping carts and secure transaction processing. It may
also have absolutely no substance behind it. If you are not familiar with a
company be cautious about the transaction. This is not to say you should not
do business with newly established companies, but caveat emptor let the buyer
beware.
To protect yourself, contact the Better Business Bureau serving the area where
the company is based. Obtain recommendations from other people who have been
satisfied in their dealings with the company. There are online business rating
and feedback message boards which may contain valuable information. Remember,
you could be a victim of bad business practices just as easily as you could
be a victim of a fraud.
Be very cautious about sending wire transfers, money orders, cashier's checks,
or making deposits directly into bank accounts. Once these types of payments
are made, there is no recourse if the expected merchandise is never delivered.
Most legitimate businesses will accept payment via credit card. Because the
company will have to satisfy certain requirements in order to obtain a merchant
account you can have a higher level of trust in them. In addition, credit cards
offer the buyer some protection if the merchandise is never delivered.