Alert: eBay and SquareTrade scam

Are you being scammed? Need to know the definitive answer right now?

READ THIS ARTICLE and then come back to this page when you're finished (if you like).

--

Infopackets Reader Rupert H. writes:

" Dear Dennis,

Last Sunday, I saw a one-day sale for a Harley Davidson Sportster 883 motorbike on eBay. The seller had around 500 or 600 positive feedbacks. The sale required that you contact the buyer first before you were allowed to bid, and so I did. The seller wanted to do business through a company called Square Trade. I checked out the website and the company seemed legitimate. 'Square Trade' sent me an email with payment details, stating that they would hold the money until I got the goods. The payment was to be made through Western Union.

As it turns out, I was scammed. The email address the Fraudster used was support@transaction-squaretrade.com. Is there someone who could trace him? Please help me in any way you can. I would love to see justice served. "

My response:

I have a number of comments to make concerning this unfortunate raw-deal.

RE: The sale required that you contact the buyer first before you were allowed to bid ... the payment was to be made through Western Union.

These statements alone should be screaming "Red Flag"! Dealing through Western Union makes it even harder to get your money back because once it's sent, it's sent. The Western Union modo is to "send cash fast". On the other hand, if you used a check to send money to this person, you may have at least had a fighting chance to cancel it in time.

RE: Google -> Search -> "Squaretrade scam"

First of all, SquareTrade.com is a legit company. From wholeSale411.com:

" Square trade is just an optional mediation service eBay provides by which buyers / sellers can hopefully resolve a transaction and get bad feedback removed. Nothing more. It's optional so if one party wants to participate and the other doesn't, nothing happens. Scammers [often] describe Square Trade as being something it's not. It doesn't collect money from anyone, it doesn't monitor transactions in progress, [and] it doesn't warehouse goods. " (Source: wholesale411.com)

In other words:

SquareTrade does not do "deals". If someone says they're using SquareTrade as a "third party" so that you can get your money back if the deal somehow sours or if you're dissatisfied, it's a SCAM! I repeat: SquareTrade does not accept cash, store goods, or work as a "third party" for deals that have not yet gone through. Furthermore: if the person you're dealing with has emailed you repeatedly "on the side" and says that they prefer you to wire the money directly to them, it's a SCAM!

A bit of research from carBuyingTips.com also provided an important tip:

" eBay and Square Trade never email you to certify a 'seller' as good or tell you to use Western Union to pay for purchases. In fact, both warn you not to use Western Union! Don't fall for these spoof emails! " (Source: carbuyingtips.com)

RE: The fraudster's email address is support@transaction-squaretrade.com.

Let me try to explain how you were scammed. First, you were referred to a legitimate service in hopes of 'upping' the scammer's credibility (in this case, Square Trade). However, what probably slipped by you was the fact that the web site domain name "transaction-squaretrade.com" is in fact not related to squaretrade.com. The scammer simply made up that domain name to fool you. Furthermore, if you research the domain name transaction-squaretrade.com on the 'net (using "WHOIS"), you'll see that the contact fields are full of nothing but bogus information.

I doubt very much you'll get your money back, however, you might want to contact squaretrade.com and western union to let them know of the scam (although I'm sure they're already aware). You can also contact the registrar of transaction-squaretrade.com and complain; hopefully they will relinquish (and ban) the domain name. I also suggest you visit carBuyingTips.com for more information on preventing this type of scam (and things you can do to protect identity theft):

http://www.carbuyingtips.com/fraud.htm

At any rate, thanks very much for pointing this out. I hope that by posting this message, other Infopackets Readers will be aware of this scam and won't fall victim.

--

This article is part 1 of a 4 part series. Click to read the remaining series:

• Alert: eBay and SquareTrade scam
   
• Alert: eBay and SquareTrade scam, Part 2
   
• Alert: eBay and SquareTrade scam, Part 3
   
• Alert: eBay and SquareTrade scam, Part 4  <-- read this should you have any doubt whether you are being scammed.