Western Union Educates Consumers On Internet Scam

In its efforts to help protect consumers from becoming victims of fraud, Western Union, a leader in global payment services, is offering the latest information and tips on common Internet scams.

A statement posted on the website of the pay services company warned consumers to be particularly careful when using money transfer services to make purchases through Internet auction, marketplace and classified ad sites, such as eBay and Craigslist.

According to the statement, two of the most common Internet scams to be aware of are failure to deliver merchandise, which targets buyers as victims and overpayment, using a fake check, which targets sellers as victims.

“Internet scams succeed based on the fraudster’s ability to earn their victim’s trust,” said Joseph Cachey III, acting general counsel and chief compliance officer of Western Union.

“Many fraudsters even coach their victims on how to safeguard their funds, using a money transfer service, which supports the aura of trust they try to create. Unfortunately, these extremely convincing appeals, combined with a ‘once in a lifetime’ deal, create a very powerful potion that some people find too difficult to resist. People need to set their emotions aside, understand the facts of the situation and not send the money.”

Explaining how the Failure to Deliver Merchandise scam work, Joseph Cachey said: “The Failure to Deliver Merchandise scam couldn’t be simpler. A buyer (the victim) reaches an agreement to purchase an item from a seller (the fraudster) via the Internet. The seller requires payment through a money transfer service, such as Western Union, and picks up the funds using a professionally produced fake ID. The promised merchandise is never delivered.

“Failure to Deliver Merchandise” scams usually have one or more tell-tale signs: The merchandise being sold may be offered at a surprisingly low price. The seller will require that payment be made only through a money transfer service; possibly even suggesting ways of safeguarding the funds such as using a “test question” in lieu of an ID.

—Henry Ojelu