Beware of scamsters’ web when you’re trading online
THE internet brings the world into our homes, which is mostly a good thing, but the downside is it’s teeming with fraudsters intent on luring our money into their bank accounts.
When it comes to doing business online with a company or entity that does not have an established track record, you are generally playing with fire.
Over the years I’ve dealt with countless cases of consumers – both buyers and sellers – who’ve lost money because they assumed the other party was genuine.
The cameras, puppies and even, bizarrely, R800 worth of burgundy ostrich feathers they thought they were buying, after exchanging chatty e-mails with the sellers, never existed – the only thing which was real was the trusting consu money, being transferred into the fraudsters’ bank accounts.
Often it’s the seller who’s faking it – but earlier this year Michael, of Durban, advertised windsurfing equipment on Gumtree, and a foreigner claimed to have made payment.
E-mails purporting to be sent by PayPal requested a series of fees from Michael, including “insurance” totalling R10 000 for the release of the money.
It was all part of the fraudster’s web of deceit, and unfortunately Michael fell for it.
In short, fraudsters, exploiting the unseen, virtual nature of online trading, have made it a high risk activity.
With this in mind, Port Elizabeth entrepreneur Martin Reynolds has launched a service called Shepherd, as an independent third party which “looks after” both the goods and the money, ensuring that neither party gets done down.
Only when the buyer has inspected and accepted the item is the money they’ve paid – to Shepherd, via cash or credit card – released to the seller.
Reynolds got Standard Bank sold on the idea as provider of the banking platform – it helped that one of the bankers he liaised with “sold” a R20 000 mountain bike on Gumtree to a seller who faked payment – and then he partnered with RAM couriers. Gumtree is also affiliated.
So aside from safeguarding the money, Shepherd eliminates the need for buyer and seller to meet either in the virtual or the real world.
Soon after Shepherd’s mid-July launch, for example, a seller in Swellendam sold some LED lights to a buyer in Maraisburg, with the money being paid to Shepherd and the goods being taken from one to the other by RAM.
Who pays what? The seller pays a competitive courier fee and a transaction fee of 3.95%, which is deducted from the purchase price.
When buyer and seller agree online to do the deal, either party can suggest using Shepherd, but it’s the seller who must initiate it, by logging on to Shepherd at – www.paywithshepherd.com – and e-mailing the buyer a unique transaction number.
The buyer then logs in using that number and pays the agreed amount to Shepherd, which notifies the seller that the money’s being reserved.
They pay the courier rate, waybill and wait for collection.
The courier collects and delivers the goods and the buyer gets to inspect and either accept or reject the item – on the spot.
If the
buyer
rejects,
they
get
a
their money back, minus the return courier fees. If they accept, Shepherd pays the money to the seller, minus the transaction fee.
No doubt fraudsters will start abusing the Shepherd name to con their victims, so never click on a link to “Shepherd” – except to confirm your e-mail address during the registration process.
The “real” Shepherd can be contacted on
And if you’ve used the system, as either a buyer or seller, I would appreciate your feedback:
● Wendy Knowler will be away next week but her column will return on August 17