Case Description:
I'm trying to do a deal with a supplier. I have told him I won't pay until I receive the goods. I can understand that he won't send the goods without payment because he could be afraid I will take the goods and refuse to pay. Therefore, he has come up with an idea.
I pay for the goods using Western Union and enter his address but use someone else's name (e.g. one of my friends or family members). He will then send the goods as I obviously have the required amount of money. When I receive the goods, I can change the name on the Western Union payment form to his name so he can collect the money.
Will this make the transaction safer?
Analysis of this case:
1. Money transfer services, such as Western Union, are fast, easy and convenient ways to send funds to people you know. They are not designed to be a payment method for doing business with a stranger. If you don't know the person you are sending money to, this payment method is the same as sending a cheque to someone. They can cash it anywhere without restrictions.
2. Be cautious if a supplier tells you that they will only accept money transfer as their payment method. Most legitimate sellers will accept more than one form of payment. Be suspicious if a supplier tells you how to "safeguard" your purchase by putting the name of a friend or loved one on the money transfer documents. Also be careful if they ask you to establish a "test question." Changing the name or adding a test questions will not protect you from a fraudulent seller.
3. Anyone can pick up the payment whenever they show either
a) proper identification or
b) a money transfer number (MTCN).
All a fraudster has to do is complete the "To Receive Money" form and give it to the Agent with their ID card or the correct MTCN. The agent will give them a receipt. When they sign the receipt, they can take the money without a problem.
4. Western Union does not offer an escrow service or any type of "purchase protection." In other words, once you send your money, there is no way to get it back. Remember, Western Union is a service typically used to send money between two parties that know each other.
Re: Fraud Case Study 18 - Western Union payment Fraud
by muta on 02 Apr 2009 02:10
Watch out this SCAMMER! " VERYGOOD INTERNATIONAL DEVELOPMENT Co., Ltd "
I had order USB Flash Drives & MP3 Players from this company.
Total almost USD 600 paid by Moneygram because they did not accept Paypal.
After that, they sent me the wrong models of USB Flashdrives, poor quality and defect items.
Moreover, wrong capacity and not my ordered color of MP3 Players.
When I told Jessica (sales person) about the defect & wrong items, she told me that she will send me new ones
next time when I have make a new order. Pretty bad, huh?
I should Google before buying in Alibaba. I use keyword involving this company and then shocked !!
http://resources.alibaba.com/topic/360493/Beware_of_This_Seller_p_r_7592_hotmail_com.htm?message=508994
http://resources.alibaba.com/topic/308592/Rant_Deleted.htm?message=385265
http://resources.alibaba.com/topic/351838/Xiamen_Forward_Trade_Co_Ltd_a_SCAM_COMPANY_BE_AWARE_.htm
They will change company's name, email, sales person name to another and then do it all again and again.
Check this company " Forward Electronic Technology Limited " ( http://www.hkforward.cn ) has Registered Address, Registration No.1255980 same as " VERYGOOD INTERNATIONAL DEVELOPMENT Co., Ltd " and also same company profile!!
Here is the latest contact info of this SCAMMER!
Company Name: Verygood International Development Co., Ltd.
Legal Representative/Business Owner: Ms. Rui-juan Chen
Registered Address: Hollywood Plaza,610 Nathan Road, Mongkok,Kowloon, Hongkong
Address: 32F, B building, Huaqiang Garden, Futian District, Shenzhen, China
Zip: 518033
Telephone: 86-755-81241196
Fax: 86-755-29321088
Website: http://www.hkucard.com.cn , http://ucard.en.alibaba.com
Email: ucard_6228@hotmail.com ( Jessica )
Payment: Western Union , Moneygram info
first name : JIANWEI
last name : XUE
city : Shenzhen
province : Guangdong
country : China
zipcode : 518000
Re: Fraud Case Study 18 - Western Union payment Fraud
by dPHAN on 29 Sep 2009 21:41
Quoting from [Safe Trading Admin]:
Case Description:
I'm trying to do a deal with a supplier. I have told him I won't pay until I receive the goods. I can understand that he won't send the goods without payment because he could be afraid I will take the goods and refuse to pay. Therefore, he has come up with an idea.
I pay for the goods using Western Union and enter his address but use someone else's name (e.g. one of my friends or family members). He will then send the goods as I obviously have the required amount of money. When I receive the goods, I can change the name on the Western Union payment form to his name so he can collect the money.
Will this make the transaction safer?
Analysis of this case:
1. Money transfer services, such as Western Union, are fast, easy and convenient ways to send funds to people you know. They are not designed to be a payment method for doing business with a stranger. If you don't know the person you are sending money to, this payment method is the same as sending a cheque to someone. They can cash it anywhere without restrictions.
2. Be cautious if a supplier tells you that they will only accept money transfer as their payment method. Most legitimate sellers will accept more than one form of payment. Be suspicious if a supplier tells you how to "safeguard" your purchase by putting the name of a friend or loved one on the money transfer documents. Also be careful if they ask you to establish a "test question." Changing the name or adding a test questions will not protect you from a fraudulent seller.
3. Anyone can pick up the payment whenever they show either
a) proper identification or
b) a money transfer number (MTCN).
All a fraudster has to do is complete the "To Receive Money" form and give it to the Agent with their ID card or the correct MTCN. The agent will give them a receipt. When they sign the receipt, they can take the money without a problem.
4. Western Union does not offer an escrow service or any type of "purchase protection." In other words, once you send your money, there is no way to get it back. Remember, Western Union is a service typically used to send money between two parties that know each other.
Re: Fraud Case Study 18 - Western Union payment Fraud
by Pistol Pete 44 on 31 Oct 2009 18:46
Fraud case study 20 - big purchase order trap
Author: Safe Trading Admin
Fraud case study 19 - for newcomers on alibaba
Author: Safe Trading Admin
