Beware Of Fraudulent On-Line Escrows


From time to time, the Department of Business Oversight posts warnings about fraudulent on-line escrow companies.  According to the Department, these fraudsters use stolen identities and credit card numbers to open a Web hosting account.  They then upload content files to the Web hosting server to create a phony site.  These sites often claim to be licensed by the Department and may provide a link to the Department’s website.  Either the license number is fake or it has been stolen from a legitimate company.  To add to the deception, the website may display logos from the Better Business Bureau, VeriSign Secure, TRUSTe, and even the Internet Fraud Complaint Center.

The Department licenses hundreds of independent escrow companies but only a handful (and I mean you can count them on one hand) are licensed as online escrow companies.  You can find a list of licensed online escrow companies on the Department’s website.

Here is the Department’s most recent warning:

The Department of Business Oversight has been notified that is offering escrow services over the Internet and is falsely advertising that it is Funds Disbursement Services, Inc., license number 963-2324, a valid escrow company regulated by the Department of Business Oversight. is not a website of Funds Disbursement Services, Inc. and is not licensed to conduct escrows by the California Department of Business Oversight.


Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins Leck Gamble Mallory & Natsis LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.