Fake escrow payment protection buyer scam — marketplace buyer insists on using their escrow service + ship item/send crypto first + escrow will release payment after confirmation + fake escrow never releases funds + seller loses item and payment

Fake escrow service fraud in peer-to-peer marketplace transactions — one of the most effective scams targeting sellers on Craigslist, Facebook Marketplace, eBay, P2P crypto exchanges, and vehicle/real estate listings. The scammer poses as an eager buyer and insists on using a specific "escrow service" for "buyer and seller protection." The escrow service is controlled by the scammer. In the standard variant: the seller is instructed to ship the item first or transfer cryptocurrency, then wait for the "escrow" to confirm delivery and release payment — which never happens. In a reverse variant targeting buyers: the "seller" asks the buyer to send funds to a "secure escrow wallet" before the item is delivered — funds are stolen. Legitimate escrow services: Escrow.com is licensed by the California DFPI and is the most recognized legitimate escrow service; it is used primarily for domain name and vehicle transactions. Key facts: (1) No legitimate P2P marketplace (eBay, Facebook Marketplace, Craigslist) uses a third-party escrow service for standard transactions — eBay uses its own payment protection; (2) Crypto "escrow wallets" that require you to send funds first are invariably fraudulent — legitimate smart contract escrow requires both parties to deposit simultaneously; (3) Any buyer who insists on a specific escrow service you've never heard of is almost certainly the scammer who controls that service; (4) The FBI IC3 lists fake escrow as a top fraud variant for online sales scams. The IC3 2024 Internet Crime Report: online marketplace fraud causes over $300M annually. Rule: use only the payment system built into the marketplace you're selling on.