Scam & Fraud Glossary

Escrow scam

A fake or impersonated escrow service used to intercept a payment between strangers.

Escrow is a genuine service where a trusted third party holds a buyer's payment until goods are delivered as agreed, protecting both sides in a deal between strangers. An escrow scam abuses that trust by inventing a fake escrow service — or impersonating a real one — to intercept your money.

In a typical version, a seller or buyer on a marketplace or vehicle-sales site insists on using a particular 'secure escrow' site they recommend; the site is fraudulent, and the moment you pay in, the money and the other party disappear. Warning signs include the other party steering you to an unfamiliar escrow provider they chose, a website that looks hastily built or newly registered, and pressure to release funds quickly. Never use an escrow service suggested by the person you are trading with — if you use one at all, research it independently and reach it yourself, not through a link they send. For most consumer purchases, staying inside a platform's own protected payment system, as our marketplace-scams guide recommends, is safer and simpler than any standalone escrow arrangement.