Analysis of Telecommunication fraud

1. “Originally, I was told that I could order one laptop; but after sending payment, I was told that 5 laptops are the minimum order. I sent payment for 4 more laptops, but I still haven’t received my laptops”

2. “This company said the goods they sent me are detained in the Customs Office because the Customs Office found no original invoice attached to the goods. I was told that it’s his company’s policy to issue an original invoice only when the quantity is above 5 units. In other words, they want me to buy 3 more laptops, and then they will issue an original invoice to release my goods.”

3. “They don’t accept an escrow service for payment, they use wire transfer only. I was told to send my payment to a private bank account. After payment, this company told me that their minimum order is 3 laptops, and they asked me to pay for an additional 2 laptops to receive the products I ordered.”

4. “They are using an unknown shipping website. After I made the payment, it showed my goods were on the way for a week! I think they have created a shipping website to con people into believing that their package is on the way.”

The common characteristics in all these kinds of fraud cases:

1. The seller is providing high tech products, such as laptops, Ipods, MP4 players, mobile phones, second hand cars, etc.

2. The price is extremely low compared to the market price: generally 50% lower than the market price.

3. Most of sellers claim to be from European countries, but their IP addresses are mostly from African countries.

4. They do not accept Paypal, L/C, or other secure payment. They prefer to use Western Union or Wire Transfer payment and recommend buyers use an unknown escrow website.

5. Their land numbers are not working or invalid, but they can be contacted by their mobile phone numbers; or they provide a forwarding telephone number to buyers.

6. They refuse requests from buyers to pick up their goods personally.

The fraudster always:

1. Attracts buyers with extremely low prices and then requests upfront payment from the buyer. However, they cannot be contacted after payment is sent.

2. Sends quality samples to buyers in order to convince buyers, then requests a fee for the samples. The seller seems quite professional and all things go smoothly with the sample order. When the large order comes, the supplier asks buyers to pay a full up-front payment or a deposit. However, they cannot be contacted after the money is paid.

3. After receiving payment, they will give you different kinds of excuses why your items cannot be sent. They may suggest that you send more payment to get your product.  

4. Ask buyers to send payment to a private bank account instead of a company’s bank account.

5. Suggest buyers accept shipping through an unknown shipping website, and then provide a fake tracking number to convince buyers their goods are on the way. They will then push buyers to make the rest of the payment.