Case Description:
I'm trying to do a deal with a supplier. I have told him I won't pay until I receive the goods. I can understand that he won't send the goods without payment because he could be afraid I will take the goods and refuse to pay. Therefore, he has come up with an idea.
I pay for the goods using Western Union and enter his address but use someone else's name (e.g. one of my friends or family members). He will then send the goods as I obviously have the required amount of money. When I receive the goods, I can change the name on the Western Union payment form to his name so he can collect the money.
Will this make the transaction safer?
Analysis of this case:
1. Money transfer services, such as Western Union, are fast, easy and convenient ways to send funds to people you know. They are not designed to be a payment method for doing business with a stranger. If you don't know the person you are sending money to, this payment method is the same as sending a cheque to someone. They can cash it anywhere without restrictions.
2. Be cautious if a supplier tells you that they will only accept money transfer as their payment method. Most legitimate sellers will accept more than one form of payment. Be suspicious if a supplier tells you how to "safeguard" your purchase by putting the name of a friend or loved one on the money transfer documents. Also be careful if they ask you to establish a "test question." Changing the name or adding a test questions will not protect you from a fraudulent seller.
3. Anyone can pick up the payment whenever they show either
a) proper identification or
b) a money transfer number (MTCN).
All a fraudster has to do is complete the "To Receive Money" form and give it to the Agent with their ID card or the correct MTCN. The agent will give them a receipt. When they sign the receipt, they can take the money without a problem.
4. Western Union does not offer an escrow service or any type of "purchase protection." In other words, once you send your money, there is no way to get it back. Remember, Western Union is a service typically used to send money between two parties that know each other.
Re: Fraud Case Study 18 - Western Union payment Fraud
by Remus on Sun Jun 01 20:01:47 PDT 2008
![[em6]](http://img.alibaba.com/images/eng/style/icon/emoticons_rage.gif){kind=icon}
While this information is true, I entered into this scam (not knowing it was a scam), however, when it came time to give the information to the awaiting person wanting to check and then ship so I can change the name the next day. I gave on PURPOSE wrong name and switched one of the numbers - Therefore the scammer couldn't scam me. Think again - I called Western Union the morning before entrusting my money to them. After I learned my money was gone - I asked Western Union how is that he couldn't have been a woman, he wouln't have had an ID, he didn't have the correct number and he didn't have the correct name. You know Western Union basically told me scammers don't run alone - they are in groups or clans. The ONE point this study leaves out is: My money should have been safe - the scammer didn't have the correct MTCN # nor did he have the correct spelling or name to pick up the money. Which leaves me to believe that one person in the group or clan either works for a Western Union place of pick-up in a particular area or the gang, clan, or group pays a Western Union Employee to pay out funds that don't belong to the right person. The best thing we can combat Western Union is if we don't invest / entrust our money to ANY Western Union they will simply disappear - DO NOT USE them. Would you put your banking behind a glass door? That is what Western Union is like. POSTING your money for all to see in an insecure enviroment. You have no idea who works at these Western Union places. Mine was in a K-Mart. Umm I am pretty sure that if I could guarantee a $300 cash payout to a teenager - I am pretty sure I can get your money - not needing any ID. Western Union locations are not security protected like a bank and they should be. To many people Western Union is their bank - This bank needs to close permanently. Do NOT use them even for family, best friend or even your pet. Send a check you can track a check.