Bitcoin and Fraud

[webtricks]

Using Escrow Service can be a good way to prevent scams from untrusted sellers.
For trusted sellers, I don't think you will face such problem ever.
By the way, Consumer Court is always there. Suppose, you made payment through cards/cash, then too transaction is reversible only when company wishes so. Similarly, in case of Bitcoin if company wishes, it can issue you refund. No matter whether transaction is reversible or not.

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[BuySomeBitcoins]

Using Escrow Service can be a good way to prevent scams from untrusted sellers.
For trusted sellers, I don't think you will face such problem ever.
By the way, Consumer Court is always there. Suppose, you made payment through cards/cash, then too transaction is reversible only when company wishes so. Similarly, in case of Bitcoin if company wishes, it can issue you refund. No matter whether transaction is reversible or not.

This is the 5th time I say it.

A Seller who will accept payments on his online store will not use Escrow.

And using reputables sellers like amazon, or using Paypal - CC is not helping Bitcoin, and is not helping new businesses.

[Vaccinus]

i think you missed the point of an escrow, otherwise why they exist, just use an escrow with undoubtedly merchants, if amazon were to accept bitcoin you would have no problem with them, but with private man selling stuff, i would use an escrow, any other serious merchants with his website will not scam you that would be stupid from him, would cost him customers

[BuySomeBitcoins]

i think you missed the point of an escrow, otherwise why they exist, just use an escrow with undoubtedly merchants, if amazon were to accept bitcoin you would have no problem with them, but with private man selling stuff, i would use an escrow, any other serious merchants with his website will not scam you that would be stupid from him, would cost him customers

No, you missed the whole point of this conversation.


Escrow can be used in a platform where sellers and buyers can do business, or sellers can sell their products, not the case for single merchant websites.

[QuestionAuthority]

If I had to use escrow every time I used my credit card to buy something online I would cut them in half and throw them away. Credit cards would be useless for me then.

I use credit cards with fraud protection for those items.

Kind of contradicting yourself there  

No contradiction at all. Bitcoin escrow is too slow when all I want to do is order a pair of Levi 501s. I log on, make the order, enter my CC info and place the order. 5 minutes involvement tops. The CC company keeps me safe because I signed a contract with them that guarantees my safety wherever I shop (plus the 20 other benefits I get like flyer miles). That's not escrow. That's a legally binding contract that I can sue over.

Setting up an involved escrow is too much work for a pair of jeans. The bitcoin escrow services I've used in the past were more expensive than the 2% merchants get charged per transaction. I used to trust JohnTheDong's escrow but I don't know if I trust any others. Searching for an escrow that I trust isn't worth the time for me. If I do find an escrow person that I use regularly they can still rip me off eventually (that's happened many times before). Its just not worth it for me, you're mileage may differ.

[Dudeperfect]

Using escrow is the best way I know to avoid the scam and be safe in the deal. It works almost 90% while dealing online, especially with strangers. There are best escrows with us on bitcointalk and I will always keep recommending newbies (and senior members too) to go with escrow because the security assurance is worth more than escrow fees.

[Supercrypt]

You must study and search for a legit site first before spending your bitcoin over there.Mostly its the buyers fault why they are being scammed by sites or other peoples too their trust too much depending on the feedback which may be fake

Sometimes scenario is a small picture and not of sites, for example I see an ad here in currency exchange thread where I see my need being fulfilled then how do I know if the guy providing that service is legit ? And on asking for escrow, the seller or exchanger refuses.

In many cases I have seen that who refuse escrow are scammers but still we can't call someone a scammer just because they don't trust a third party.

[cryp24x]

Using Escrow Service can be a good way to prevent scams from untrusted sellers.
For trusted sellers, I don't think you will face such problem ever.
By the way, Consumer Court is always there. Suppose, you made payment through cards/cash, then too transaction is reversible only when company wishes so. Similarly, in case of Bitcoin if company wishes, it can issue you refund. No matter whether transaction is reversible or not.

This problem is somehow solved by multisig address, or even having an escrow.  Product will go to escrow and escrow deliver the product to the buyer.  Then after escrow received the product, escrow and buy will then unlock the fund and pay the seller. This is the best setup to avoid scam or fraud when buying online.

[erikalui]

Assuming a merchant accept Bitcoin,

You as a shopper, place an order, and that merchant did not deliver, or sent to the wrong address, or sent a fake product.

You can not reverse the payment, you can get your bitcoins back, and the only thing you can do it leave a negative feedback.

Of course, there are many other scenarios, like phishing websites, fake websites, selective scams, and so on

What are your thoughts and ideas to prevent these scams.

You should know who the merchant is and trust the website/person enough to trade with them in bitcoins. It's the same case with ebay where people have just created/bought fake accounts with a lot of feedback and the payments have been reversed or the item was damaged. It is better to use a middle man who can hold the payment and release it when the product has been delivered but here lies the problem if the buyer is a scammer and lies about not receiving the product/receiving a damaged product.

When big websites like Amazon can be fooled by customers, we too can be cheated. Buying something from a physical store using bitcoins is the best way to avoid such scams.

[BuySomeBitcoins]

Pretty useless answers here.

Escrow can not be used for single merchant websites, generate frictions for shopper and merchant.
Feedbacks and reviews of merchants are useless for new businesses, can be faked.

Using Paypal / CC is the opposite of this thread, since we seek to promote Bitcoin and keep both parties (Buyers/sellers) safe.

Thank's for your participation anyway.


Topic locked.