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Consumer Alert! Avoiding online PowerBook & iBook scams
February 1, 2003
by Steve Hildreth
Editor-in-Chief
Over the past few months we've had readers point us to previously unknown 'companies' on the web claiming to sell Macs at substantial discounts. Are they legitimate? Well, that's a good question. Apple authorizes only a few companies to sell new Macs over the internet or through mail-order catalogs, and we track all of these resellers over at MacPrices.com. If you buy a new Mac from a company over the internet that isn't on Apple's list, then they aren't Apple Authorized. We covered some of the reasons why you might not want to buy from a non-authorized reseller in this article a couple of years ago. Since then, however, a new type of scam has popped up that bears watching.
Websites have begun appearing representing hitherto unknown companies claiming to sell Macs at substantial discounts. The websites are poorly done, in some cases, and may be based in foreign countries. None of them are Apple Authorized Resellers. Things get really suspicious, however, when you take a look at their payment policies. Here is one example:
PAYMENT METHODS:
We accept only Cashier Checks, Bank Drafts, MoneyGram or Western Union
You may have a flat one time $250 discount if pay with MO or WU.
No COD. No Escrow.
Note that they only accept cash. No credit cards, no COD, and no escrow. The fact that they don't accept credit cards should raise a red flag right away. To be honest, you should never buy a new computer with cash--always use a credit card, since you have a certain degree of liability protection (usually only $50 out of pocket). If you send money via Western Union, a cashier's check, or something similar, you have no way to recover your money should you be dissatisfied with your purchase. Your money will be gone.
So what's the scam? For one, you may send them cash and get nothing in return. Some of these websites are very short-lived. A few people send them cash for new product, then the website is taken down, and the 'company' disappears. This is particularly true for places that don't advertise a legitimate business address--some only give you e-mail addresses and mobile phone numbers. Alternatively, these scammers will take your money, then sit on it for a couple of months while feeding you various excuses for why your product hasn't shipped. If you complain loudly enough, they (may) eventually refund your money. The scam? They get to collect a few month's worth of interest, and you never get the product.
Other companies trick you into signing up for a bogus escrow service. You send the bogus escrow service money for the product, then a few weeks later the service shuts down, and it and your seller both disappear with your money. If you want to use escrow, use Escrow.com, not some variation like escrow-time.com or something similar. Never deal with a seller who refuses to use escrow.com, especially if you agree to pay the nominal fee.
Do you have an experience or comment to add?
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