Category: online scams

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buyer protection escrow online classifieds online scams seller protection

How Escrow is Revolutionizing E-Commerce in South Africa

The South African e-commerce market is booming. With millions of transactions taking place online each year, more individuals and businesses are buying and selling everything from electronics to fashion, vehicles to property — all at the click of a button. But with this growth comes a surge in digital fraud, scams, and mistrust between buyers and sellers.

This is where escrow services, like those offered by Paysho, are transforming the way e-commerce operates in South Africa — creating a safer, more trustworthy space for everyone.

What Is Escrow?
An escrow is a financial arrangement where a third party (like Paysho) holds and regulates the payment of funds for two parties involved in a transaction. The funds are only released when all the terms of the agreement are met. It’s a simple yet powerful tool to reduce risk and ensure both sides get what they agreed upon.

The Trust Problem in South African E-Commerce
According to the South African Banking Risk Information Centre (SABRIC), digital crime, particularly in peer-to-peer online transactions, is on the rise. Many users of platforms like Gumtree, Facebook Marketplace, and even informal e-commerce stores have lost money to fake buyers or sellers.

The problem? Lack of trust. Buyers fear paying for an item that never arrives, while sellers worry they won’t be paid after shipping a product or rendering a service.

Escrow Solves This
Here’s how Paysho’s escrow system changes the game:

✅ For Buyers
Funds are only released when you’ve received the goods or services in the agreed condition.

You no longer need to rely on “good faith” alone when transacting with a stranger online.

✅ For Sellers
You’re guaranteed payment once the buyer confirms receipt.

No more worrying about bounced transfers or fake proof of payments.

Use Cases in South African E-Commerce
Escrow is becoming essential in key sectors:

  1. Facebook Marketplace & Gumtree
    Where fraud is common, Paysho provides a secure bridge for safer personal sales.
  2. Freelancing & Digital Services
    Graphic designers, writers, and web developers can now transact safely with clients locally and abroad.
  3. Online Classifieds
    For high-value goods like electronics, furniture, or vehicles, escrow ensures both sides play fair.
  4. Small Online Stores
    New and niche e-commerce platforms can plug into Paysho to build buyer trust instantly.

The Impact: Safer, Stronger Growth
With escrow services like Paysho:

Confidence grows: Consumers are more likely to transact when they feel safe.

Reputation improves: Sellers using escrow signal trustworthiness.

Disputes decrease: With funds secured until terms are met, fewer transactions end in conflict.

What Users Are Saying
“Paysho made it possible for me to sell my laptop online without worrying. The buyer paid upfront into escrow, and I got the funds as soon as he confirmed delivery. It’s a game changer.”
— Nokuthula, Cape Town

“I won’t do any more Facebook Marketplace deals without Paysho. Too many scammers. This is the only way I feel safe.”
— Thabo, Johannesburg

Escrow = The Future of E-Commerce in SA
As South Africa’s digital economy grows, escrow will become the backbone of safe and trusted transactions. Whether you’re a buyer, seller, freelancer, or small business owner, Paysho empowers you to trade with confidence.

Ready to transact safely?
Use Paysho for your next online deal.
✅ Simple. ✅ Secure. ✅ Scam-proof.

➡️ Get started today at www.paysho.co.za

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buyer protection escrow online classifieds online scams seller protection

Buying and Selling Online?

Have you ever been hesitant to buy or sell something online because you didn’t know if you could trust the other person? You’re not alone. In South Africa, a 2019 survey by Paysho revealed that 86% of online shoppers had never heard of an escrow service. But escrow services are a great way to protect yourself from scams when transacting with strangers.

What is an Escrow Service?

An escrow service is a third-party platform that holds onto the buyer’s money until the buyer receives the goods or services they ordered and are satisfied with them. This protects the buyer from losing their money if the seller doesn’t deliver as promised. It also protects the seller from not getting paid if the buyer backs out of the deal.

Paysho – Peace of Mind in Every Transaction

Paysho is a South African escrow service that offers buyer and seller protection for a variety of transactions, including physical and digital goods, and services.

Here’s how Paysho works:

The buyer and seller agree on the terms of the transaction.

The buyer deposits the funds into Paysho.

Paysho holds the funds until the buyer confirms they have received the goods or services and are happy with them.

Paysho releases the money to the seller.

Paysho is a win-win for both buyers and sellers:

Buyers get their goods as promised and don’t have to worry about being scammed.

Sellers get paid once the buyer confirms receipt and satisfaction with the goods and don’t have to worry about chasing down payments.

Why Use Paysho?

Peace of mind: Paysho takes the stress out of online transactions. You can be sure that your money is safe and that you’ll get what you paid for.

Protection from scams: Online classifieds and buy-and-sell platforms are rife with scammers. Paysho helps to protect you from being scammed by holding onto the funds until both parties are satisfied.

Convenience: Paysho is easy to use and can be used for a variety of transactions.

Paysho in Action: Real People, Real Protection

Real Paysho users have shared their positive experiences:

Henriëtte Krüger bought an expensive item with no concern for fraud, thanks to Paysho’s personal attention throughout the process.

Hein Abbott had a smooth and efficient transaction for musical equipment, with excellent communication from Paysho.

Msizi Kubheka avoided getting scammed by an architect by insisting on using Paysho. After the architect failed to deliver, Msizi received a full refund.

Tacet had a safe and successful transaction for a Synology NAS using Paysho, highlighting the importance of reasonably priced escrow services for safer trading.

These testimonials demonstrate how Paysho provides real protection for real people.

Don’t Be a Victim. Be Sure. Be Smart. Use Paysho.

Join the Paysho family today and experience the peace of mind that comes with secure online transactions. Click here to get started.

#BeSureWithPaysho

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buyer protection escrow online classifieds online scams seller protection

Be Sure With Paysho

When buying or selling items online, especially through classified ads or social media platforms, there’s always a risk of being scammed. Paysho is a South African escrow service that helps buyers and sellers avoid these risks.

Paysho acts as a trusted third party, holding the buyer’s money until they receive and approve the goods or services. Once the buyer is satisfied, Paysho releases the funds to the seller. This protects both parties:

Buyers are protected because they don’t have to release the money until they know they’re getting what they paid for.

Sellers are protected because they can be sure they’ll get paid once the buyer confirms receipt and satisfaction with the goods or services.

Paysho’s Key Advantages:

Peace of Mind: Paysho’s escrow service gives both buyers and sellers peace of mind, knowing that their money and goods are protected.

Security: Paysho safeguards funds until both parties are happy, eliminating the uncertainties associated with online buying and selling.

Wide Range of Uses: Paysho can be used for various transactions, including physical goods, digital goods, services, and deposits.5 Examples include:

  • Luxury items like jewellery, art, and antiques
  • Vehicles such as cars, motorbikes, and boats
  • Services such as construction, web development, and design
  • Deposits for rentals and accommodation bookings

Simple Process: Paysho’s process is straightforward, involving six clear steps to ensure a smooth and secure transaction

Affordable Fees: Paysho charges a small percentage-based fee, ensuring accessibility and value for money.

Positive Testimonials: Paysho boasts numerous positive testimonials from satisfied users who have successfully transacted through their platform.

Addressing South Africa’s Need for Secure Transactions

South Africa has a high rate of financial crime, with 69% of respondents in a 2014 PwC survey reporting being victims. Many people are unaware of escrow services and continue to get scammed, particularly when buying high-value items like electronics or emotional purchases like pets. Paysho aims to address this need by providing a secure and trusted platform for online transactions, helping to build a safer and more informed consumer landscape.

Paysho is the best escrow service in South Africa because it offers a comprehensive solution for secure online transactions, with a strong focus on buyer and seller protection, ease of use, and affordability. Our commitment to building a trustworthy platform is evident in our tagline: #BeSureWithPaysho. By using Paysho, South Africans can enjoy the convenience of online buying and selling without the worry of scams.

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buyer protection escrow online scams

How An Escrow Service Can Protect You From Pet Scams

An escrow service can protect pet buyers from pet scams in several ways:

1. Secure Payment Processing: Escrow services hold payment until the buyer confirms receipt of the pet, ensuring the seller doesn’t receive payment until the buyer has received the pet.

2. Verification of Seller and Pet: Escrow services can verify the seller’s identity and the pet’s existence, health, and ownership.

3. Protection from Fraudulent Sellers: Escrow services can detect and prevent fraudulent activity, such as fake websites or scammers posing as breeders.

4. Safe Transfer of Funds: Escrow services ensure that funds are transferred securely and safely, reducing the risk of financial loss.

5. Dispute Resolution: Escrow services can mediate disputes between buyers and sellers, helping to resolve issues quickly and fairly.

6. Protection from Scams like “Pet Not as Described”: Escrow services can ensure that the pet is as described by the seller, reducing the risk of buyers receiving a pet that is not as expected.

7. Protection from Phishing Scams: Escrow services can detect and prevent phishing scams, where scammers try to trick buyers into revealing sensitive information.

By using an escrow service, pet buyers can significantly reduce the risk of falling victim to pet scams and ensure a safe and secure transaction.

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buyer protection escrow online classifieds online scams seller protection

Escrow Services Simplified

Online marketplaces are a popular and convenient way to buy and sell goods, but they also pose some risks of fraud and scams. One way to protect yourself and your money is to use an escrow service, which acts as a trusted third party that holds and releases funds according to the terms of the transaction. But is escrow always the best option? Here are some of the advantages of using escrow services for online marketplace transactions.

How escrow works
An escrow service is a company that provides a secure platform for buyers and sellers to complete their online marketplace transactions. The buyer pays the escrow service, which verifies the payment and notifies the seller. The seller then ships the item to the buyer and provides the tracking information to the escrow service. The escrow service confirms the delivery and releases the payment to the seller, minus a fee. If there is a problem with the item or the delivery, the escrow service can help resolve the dispute or refund the buyer.

Advantages of escrow
Using an escrow service in online marketplace transactions has several advantages for both buyers and sellers. Escrow reduces the risk of fraud and scams, as it verifies the identity and legitimacy of both parties, and ensures that the payment and the item are exchanged as agreed. It also protects buyers from receiving damaged, defective, or counterfeit goods, or not receiving the item at all, as the escrow service holds the payment until the buyer is satisfied with their purchase. Sellers are also protected from chargebacks, disputes, or non-payment, as the escrow service guarantees payment once the item is delivered and accepted by the buyer. Finally, an escrow service can enhance trust and confidence between both parties as they can rely on it to handle the transaction securely and fairly.

How to choose an escrow service
When choosing an escrow service for your online auction transaction, it’s important to do some research and comparison. You should look for an escrow service that is licensed, regulated, and insured by the relevant authorities in your country or region, and that complies with the laws and regulations of online commerce and consumer protection. Additionally, you should find one with a clear fee structure, terms and conditions, dispute resolution process, customer service policy, and written contract and receipt for your transaction. Lastly, you should make sure the escrow service has a good reputation and track record with positive reviews from previous customers and independent sources.

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buyer protection escrow online classifieds online scams

Time is NOT against you

One of the tricks that scammers use to rob you of your money is to put time pressure you. For starters, they will advertise something at such a good price that it will attract a lot of potential buyers. Anyone who shows interest in the item will be told that there are many other people interested in it and that the only way to secure it is by paying a deposit or even the full amount before they’ve even seen the product or confirmed the legitimacy of the sale.

This pressure does work because everyone likes a good deal. And the scammers know that. However, if you are in a hurry to secure the item, you are more likely to make a mistake or miss a red flag – this is exactly what scammers are hoping for.

Don’t rush into a sale right away. If something feels off about a seller, you are not under any obligation to buy and you shouldn’t be pressured into buying something before all the safety boxes have been firmly ticked.

Of course, one way to protect from any scams is by using an escrow service such as Paysho whenever you want to buy or sell from Facebook, Instagram or online classifieds. Paysho gives you peace of mind with every purchase you make by ensuring that your money is protected from any scam. Whether you are buying online or offline, you can be sure with Paysho.

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online scams

The Latest Gumtree Scam

The original article was published here.

The popular classifieds platform Gumtree has seen an increase in scams during lockdown, as fraudsters benefit from doing deals over a distance.

“The pandemic has seen more South Africans sell their items in an attempt to raise additional cash, and as those listings increase, so do scam attempts. With lockdown, buyers and sellers are inclined to transact online only rather than face to face or without viewing an item in person and using electronic payment methods rather than cash. This does lead to more instances of fraud,” says Estelle Nagel of Gumtree.

Many South Africans are also desperate for cash in tough times. “(This) means that we are less risk averse than normal and more likely to take a gamble in terms of safety,” she adds.

However, while there are more scam attempts, criminals are not necessarily more successful. The ratio of successful transactions versus fraudulent transactions is unchanged and less than 0.5% of transactions are reported as fraudulent, according to Gumtree.

The platform is, however, concerned about the sharp rise in “buyer scams”.

A fraudster will send through a fake proof of payment to a seller – typically a SMS that looks like an electronic transfer has been made – and then send an Uber driver to collect the item. The fraudster will then abscond with the product.  

High-value items are often targeted – particularly electronics like gaming consoles, tablets, phones and laptops.

Of late, however, more scams with motorcycles have been reported.

The best defence against a buyer scam is to never hand over an item until the money has cleared in your account. Once money has been received, transfer it to a separate account to avoid the fraudster cancelling the transfer from their side.

Nagel recommends that you continue to communicate via the Gumtree platform, and not on Whatsapp.  “Even though times are tough, don’t compromise on personal or financial safety. There are millions of legitimate buyers for your items – take time, negotiate and wait for the right one.

During the coronavirus crisis, criminals have targeted South Africans with various new scams.

These scams include sending victims cellphone messages with links purporting to be reports about the virus in their area – instead the links click through to phishing sites, which steal the victim’s credentials, says  the South African Banking Risk Information Centre,

There has also been a surge of fake – but very realistic – emails offering products such as masks, or fake offerings of vaccines, leading to phishing websites, Sabric says.

One way to protect yourself is to use the Paysho escrow service when buying from or selling to a stranger. With Paysho, your money or goods are always 100% protected from all scams. Guaranteed. You can click here to learn more about how Paysho works.

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buyer protection online scams

A Sad Reality

Imagine this scenario:

After years of sitting at home looking for a job and not getting one, you finally decide that enough is enough and decide to start your own small business. You start looking on Facebook and other places for things to sell.

Eventually, you find something. A lady in Johannesburg is selling 10 pairs of shoes at R250 each. The shoes are so beautiful that you could easily sell them for double that price. The problem is that you don’t have the R2500 you need to buy the stock. But you believe so much in the product and your ability to sell it. So you decide to borrow the money from a friend or a relative.

You then contact the seller, exchange phone numbers, address details and bank account numbers. You send the money off to the seller and patiently wait for your stock to arrive. In the meantime, people are starting to place orders with you in anticipation of the the stock that is on its way.

One week passes. Then two. Then three. And the stock has not arrived. You contact the seller and get no response. You send messages. Still no response. Another few weeks go buy and as hard as it is, you are forced to accept that you have been the victim of a scam. Now, not only have you lost R2500 but you now owe that amount to the friend or relative you borrowed it from.

Stories like this one happen everyday. Every single day. The good news is that it does not have to be that way. Not with Paysho around.

Whether it is physical or digital goods, Paysho ensures that all buyers and sellers are protected equally and can transact with each other in complete peace of mind. Click here for more information on how Paysho works.

#BeSureWithPaysho