I have been involved in two transactions in the last 60 days, and I’m starting to see a pattern. I’m curious how this works.
Something is advertised (not eBay); the product data is, at first look, indistinguishable from other offers for the same item (I usually use Froogle.com for this kind of search). The price is substantially lower than other seller’s offerings for the same item.
So I bite, place an order, pay by either credit card or PayPal, get an order confirmation, and a promise to ship. That’s the last I hear from the seller, who cannot be contacted. Emails do not get returned, phone calls do not get answered, and there is no tracking info supplied.
Now before you say the low price is a red flag – and I agree it is – I learned many years ago that, in some industries like electronics, it isn’t all that unusual for prices to drop quickly and “clone” manufacturers to copy a brand-name item for a seriously reduced price. Also, the first item I tried to buy was shown as 2 yo “new” stock, and while it might not be a hot item for some, it would have been perfect for my purpose.
So for the first transaction, I called the credit card company for a refund. My order said the payment was to a Chinese company (no surprise there), the CC payment was made to an American-sounding name in South Carolina, and the address was a veterinarian office. The recipient was not listed in the SC vet license bureau, so something is fishy, and the CC company gave me a refund with no hassle.
Sleuthing online, I found another recent buyer with much of the same experience, for a different purchase, and the CC payment was also to the vet’s office.
For the second similar transaction, I found an electronic item, placed an order, paid with PayPal (big mistake). I have an order number, but after 4 days, no confirmation email or tracking number. Their phone number (east coast) is always busy (even at 2AM, 3AM) or rings for 20 times. No response from emails to their customer service department. Also, their product line shown on their web page appears to be only women’s clothing, yet I ordered a highly-technical electronic gadget.
I initiated a refund procedure with PayPal, but they are notorious for siding with the seller, and they won’t refund anything for 30 days no matter what, so I’ll have to wait and hope.
So here’s my question: What’s going on here? Is this some kind of money laundering scheme, or perhaps the fake sellers expect to get enough money from suckers who won’t ask for a refund? Are Americans being used as mules, possibly unwittingly?