Escrow.com Is Now Asking For Photos of Personal Docs

[Cdomains]

Escrow/com Is Now Asking For Photos of Personal Documents.

I just logged in to Escrow/com and they are now asking for extensive verification including Photos or scans of ID's and other personal and business documents to be stored on their servers.

I have used them for years for all my transactions.

With all the hacks of servers happening around the world and security breaches exposing us to identity theft I have refused to give photos of my ID's and other documents to companies who request it.

I will not do business with Flippa for this reason.

I recently had my account frozen at a registrar that asked me for this and I refused.

Will you give photos of your personal ID's, bank records, etc to Escrow/com or will you use another service?

Personally, I think I am going to take my business somewhere else.

I am really disappointed about this after all these years.

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Related:

• New Escrow.com Account Verification Process

 

[namingdomains]

Questions to escrow.com:

1. Are the ID copies physically stored on Computers in australia and verification done by australian employees OR are ID copies stored on Computers in USA and verification done By american employees OR are the ID copies stored in some cloud somewhere and verification done By philippine employees or other low wage country employees to save on costs of processing 1+ million ID's since you have stated there are 1+ million accounts?

2. a.
Are all the employees with Access to ID's thoroughly background checked so that you have requested certificates for a totally clean criminal record for each employee having Access to ID's so escrow.com customers know that not one employee has a criminal record?

2.b.
Have you made sure that none of the employees with Access to ID's have problems with debts By running creditcheck on all employees to make sure all have good credit and no debt problems?

2.c.
Have you made sure that none of the employees with Access to ID's have problems with drugs By drug testing all employees regularly?

2.d.
Have you made sure that none of the employees with Access to ID's have problems with relatives, exes, girlfriends, boyfriends etc, who have criminal Records?

3. Is this ID demand a panicked response to an increase in creditcard chargebacks since making it easier to pay with creditcards when you threw out the previous system under old escrow.com where the buyer who bought with a creditcard was demanded to send a picture of the front and back of the creditcard and signed contract guaranteeing they will not do a chargeback?

4.
Since the regulations posted as justification for this ID-copy demand do NOT mention escrow service providers as a regulated entity that is under said regulations has escrow.com become a bank or stock broker etc. without telling domain investors OR are you you just over-reaching and this isssue was badly thought out at escrow.com leadership or badly handled By escrow.com legal counsel?

Exact quote from regulations posted as justification for ID-grab By escrow.com:
"FinCEN is issuing final rules under the Bank Secrecy Act to clarify
and strengthen customer due diligence requirements for: Banks; brokers or
dealers in securities; mutual funds; and futures commission merchants and
introducing brokers in commodities."


5.
In the event that escrow.com has become a bank or stock broker etc. without telling anyone nonetheless the date for compliance is May 11, 2018 so in the event that you have become a bank or a stock broker etc. you are rushing this issue By 17 months. Why?

Exact quote from regulations posted as justification for ID-grab By escrow.com:
"Applicability Date: Covered financial institutions must comply with these
rules by May 11, 2018."

 

[discobull]

I look at this from a risk/reward perspective. On the risk side, complying with the new escrow.com requirements means that I have to hope that they know what they're doing when it comes to safeguarding my documents. I have to hope that they do a good job of picking trustworthy employees who won't be tempted to steal my data for their personal enrichment. I also have to hope that these additional verification requirements won't turn off any buyers and end up killing some of my deals.

That summarizes the gamble I'm being asked to take by going along with this new policy. Now let's examine the reward side. So, what is my big payoff to me for taking these additional risks? A big fat 0. Nothing whatsoever.

I don't buy the anti-terrorism argument. That sounds to me like total BS and as we've seen, there are absolutely no legal requirements for escrow.com to do what they're doing. I'm guessing that the real motivation for them to do this is to reduce losses stemming from fraudulent payments. In other words, my added risk translates into a reward FOR THEM.

While there may come a time when every escrow service requires these additional verification measures, we're not at that point yet. That means we have other options. And, since I really can't think of any reason to add to my risk for escrow.com's benefit, I'm going to take my business elsewhere.

 

[pablohc86]

Second my opinion we should be more happy than not..
It is a step forward for the security.
We are 100% online with everything, if someone is able to steal sensitive data they can do this easily with our without escrow.com collecting our documents

 

[LucidDomains]

Sedo escrow is now my primary choice at 3%.

For the record, I don't mind verifying as a seller, but I do envisage issues for the buyers which ultimately could break the sale.

 

[Jackson Elsegood]

Hi Discobull,
In 2017, the risks of money laundering and terrorism financing are arguably greater than they have ever been. As a regulated US financial institution, we are required by Federal and State laws to have an Anti-Money Laundering Program in place. A cornerstone of all AML Programs is a requirement to know your customer (KYC) which begins with verifying the name, date of birth and residential address of our individual customers. For some customers who are incorporated or operate on a similar basis, e.g. partnerships and also for some customers from higher risk countries, we are required to go a little further and complete enhanced know your customer procedures and/or additional due diligence.

I understand that some customers may find these requirements to be burdensome, however it is a required response to the threats of money laundering and terrorism financing. It is honest individuals who often bear the burden of meeting the additional information required to be provided or additional screening in their other dealings with financial institutions. Additional security checks at airports are also a reaction to the times that we live in.

We take our obligations very seriously and believe that these requirements ultimately benefit and improve the safety of the whole of the Escrow.com community. Our obligation has always been to maintain all records securely, which has not changed since 1999. We are fully committed to protecting our customer's privacy and personal information and to continuing the long established trusted third party service that we have always provided.

Deciding to choose an escrow firm on the basis that they don’t have an AML program in place and hence don’t have the burden of requiring identification checks is unlikely to work out well long term. If they are not taking their obligations seriously they're likely to be either unlicensed or in breach of other regulations involving your funds.

I have always recommended only using a regulated and bonded escrow service which is audited against Federal and State laws, including the requirement to maintain an AML Program. Escrow is the gold standard for online escrow, having the longest operating history and is the most licensed, bonded and regulated operator. The very basis for a decision to use an online escrow firm is to trust that the transaction will complete safely. If you value your transaction, don’t risk it by using a startup or unlicensed fly-by-night operation.

Whether you are trading regularly or bringing a first-time buyer into a transaction, the best choice is to use is Escrow.com.

Jackson Elsegood

 

[kriss05]

In 2017, the risks of money laundering and terrorism financing are arguably greater than they have ever been.

Any links/proof for that?

We take our obligations very seriously and believe that these requirements ultimately benefit and improve the safety of the whole of the Escrow.com community.

Please explain me how demanding expensive international calls helps to improve my safety? I wasted money/time to confirm my identity this way in my last Escrow.com transaction despite being Escrow.com customer for years. Escrow.com support also said it is for my protection, but they failed to explain how does wasting my time/money protect ME?

I could understand, little bit, if that demand came before I started Escrow.com transaction or before buyer paid, but I was requested to call Escrow.com only after buyer's payment arrived - I had no choice to dismiss/choose another escrow platform. Very nice. Is that the gold standard are you talking about? Very disappointed to say the least.

Until and unless all escrow companies are demanded by all laws to collect photo ids/utility bills/pictures of wifes nude, I'm not going to send mine and I will never require my buyers to use such escrow services - will you take any liability if your servers are hacked?

Meanwhile, it is so amazing to watch how people are killing their own successful, profitable business.

 

[Charley]

Until and unless all escrow companies are demanded by all laws to collect photo ids/utility bills/pictures of wifes nude, I'm not going to send mine and I will never require my buyers to use such escrow services - will you take any liability if your servers are hacked?

OMG, pictures of wifes nude

 

[kriss05]

Demanding nude pictures will be their next step!

Chinese online loan sharks demand nude photos as guarantees

 

[discobull]

Hi Jackson. Thank you for taking the time to respond, but this is a non-starter. The problem you face with me is that I simply don't trust you. I've had misgivings about continuing to do business with escrow.com from the minute it was taken over by freelancer because of that company's poor reputation, but I stuck it out and gave you a chance to prove my doubts wrong. Unfortunately, what I've experienced since the takeover is a progressive degradation of service to the point where I've now become nervous about potential aggravation every time I bring you a deal. In other words, our starting point for this discussion is one where I don't even have full confidence that you can provide me with good/competent service. So, when you now ask me to trust you with documentation that could potentially be used to do me great harm, that's not something I'm willing to give even a nanosecond's worth of thought because you've come nowhere close to earning that trust. To put this in perspective for you, if you imagine yourself being asked for similar documentation by me -- an anonymous forum user -- that should approximate the level of trust I have in you. I wish you the best of luck with escrow.com, but I'm taking my business elsewhere.

 

[johnn]

Can you show me where is the law that required escrow companies to do this?

 

[wwwweb]

Can you show me where is the law that required escrow companies to do this?

From what I read it is not required until q2 of 2018, I would say have it optional until required.

 

[000]

I've been using them for 10+ years, and continued to use them even as things went south, but this is the final straw. Escrow.com, I will NOT ask my customers to trust you with their sensitive documents. Effective immediately I'm taking all future high-value transactions elsewhere. This isn't 2006 anymore and you'll soon be harshly reminded that y'all ain't the only option in town !

Bye bye Escrow.com !

 

[Brandon Abbey]

As Transpact.com are an EU based financial firm, you will be pleased to know that the EU has pre-empted your question and concerns, and mandated the protection you require into law.

The new Payment Services Directive (PSD2) mandates all EU-based financial firms to have robust process in place to restrict access to all sensitive information relating to payment (including client information), and to have robust procedures in place to monitor and follow up any security incidents should they nevertheless occur.

Under a separate new important EU data law, soon to come into force (for all firms, not just payment firms), EU based organisations will be able to be fined up to 4% of their worldwide turnover for any negligent data breaches and hacks.
So those demanding fines for hacks have been heard and answered.

As Transpact.com is FCA authorised in the UK, we automatically fall within the remit of these laws and regulations.
As long as you see that we are still FCA authorised, then you know that we will be complying with these requirements and standards, and that we have more than robust measures to prevent data intrusion, data loss or similar, and an absolute obligation to report to authorities any breach discovered (with possible large fine).

This goes further than ISO 27001 (an amended form of which the European Bank is currently consulting on enforcing on all EU financial firms), and PCI/DSs which is not relevant to escrow firms that do not accept payment by credit card.

Hope this gives you some comfort.

I have no knowledge of USA law, and whether similar requirements are imposed on US based companies. Sorry (and apologies that this post was EU specific - but the question was asked directly to us - all our other posts have had relevance globally for ALL escrow firms).

Many of the states here in the US will require Transpact to have licenses in order to offer your services to residents of the state.

 

[Addison]

More than 70% of your customers have voted they are leaving or considering leaving Escrow.com because of this change. It was handled poorly: no warning, premature, and I agree it should not take effect until it's required (by law and without exception) unless the account is flagged suspicious or risky.

Escrow.com, you should make adjustments before you lose 70% of your domain escrow business. I am looking for a new escrow provider, and once I find one that meets my needs and my customers' needs, I'll be gone for good.

Time is running out for you.

 

[rentmynames]

I have been their active customer since 2003. But, I guess I will have to start looking for alternative escrow provider. Getting a buyer to buy the domain is already tough, now you ask us to persuade the buyer giving out their sensitive information ? Are you NUT ?

 

[Shimmy]

Escrow.com should at least answer the question why they would require a buyer that uses a credit card to submit photo ID , when every other store on the internet does not require photo ID when using credit card.

 

[BenLondon]

We have received an offer today and accepted. But customer (B. Haugland) says this:
" Hi Ben,
I am not comfortable using escrow/com "

And he has sent us website link below to look at it (reviews of Escrow/com)

To be honest, we did not know all of these about Escrow/com

www sitejabber com/reviews/www escrow com

 

[tomcarl]

I don't mind uploading the docs as the seller, but I don't expect all of my buyers to willingly do the same. I know how many impulse sales I had that hung by a string before closing, requesting them to put in the extra work and upload their docs would definitely be the nail in the coffin. I'm trying to break barriers here, not build on them.

Unfortunately, I'll be having to use other services from this point on.

 

[Lysted]

If one is doing business with a business like escrow.com - then one should act like a 'business' - have yourself verified. It goes both ways.

 

[pchip]

If one is doing business with a business like escrow.com - then one should act like a 'business' - have yourself verified. It goes both ways.

Good luck explaining that to your buyers. It doesn't really matter what you do or think, it's what your buyers think.

 

[carob]

To be honest, we did not know all of these about Escrow/com
https://www.sitejabber.com/reviews/www.escrow.com

Very eye opening reviews.

 

[LucidDomains]

Very eye opening reviews.

Wow! Thanks for share. I didn't realise it was that bad over there.

 

[ison]

We're apply this process to all accounts, that way no matter who you transact with on Escrow.com you will know that they have been verified.

Hi,

I work for Transpact.com - Europe's leading escrow company (we handle many domain transactions).

Let me give a bit of inside information from our point of view on customer identification and verification.

We've led the way on requiring customer ID verification for years, for larger transactions.
The reason is purely down to anti-money laundering and counter terrorist-financing laws, to prevent escrow services from being used to launder the proceeds of crime, and prevent the funding of terrorism.

We do not require these intrusive checks for our own purposes in any way whatsoever as we have the customer’s money, which is what counts - we would very happily ditch the checks, but they are imposed purely due to Government regulation (we have our own other security checks).

Europe (the EU) has been much stricter on the actual implementation of these rules than the USA, but it looks like the USA is finally tightening up and implementing the letter of the law.
It is surprising that it has taken so long, as escrow is a known vector for terrorist financing and money laundering. For example, the 2010 assassination of Mahmoud Al-Mabhouh was reportedly funded through escrow arrangements.

Over the years, we have turned away much business to other escrow companies, when customers refuse to supply us detailed information strictly confidentially and highly securely (we never, ever divulge this information - except by written Court or Government Agency Order), and store the information highly securely and strictly confidentially.
In addition, many companies trace corporate or trust ownership through tax havens such as the British Virgin Islands or Cayman Islands, making true customer verification very difficult - so we do not deal with those clients, again turning them away.

One interesting development is that the legal definition of money-laundering is about to change in June, to include money which has had tax evaded.

So any escrow service that makes payment to or from a firm that is not paying its taxes fully may be prosecuted by the authorities.

Why are escrow services targeted this way ?
Well, banks and money remitters are heavily regulated this way, and escrow services are conditional money remitters! Escrow services effectively remit a payment on to the seller if X occurs, and back to the buyer if Y occurs (X and Y being the successful or non-successful transfer of the domain in the case of a domain transaction - X and Y need to be fully defined for each transaction).

Sorry for the long diatribe, but I thought this might prove useful to the questioners.

The fight against terrorist financing and money laundering looks like it is only going to increase as world events ratchet-up, and Governments correspondingly tighten regulations.

Just gonna put this out there.

It doesn't take much to obtain fake IDs, area-sensitive VOIP phone numbers and even utility bills from the Darknet. You can be sitting in front of your PC in Manila or Tirana and build an entirely fictitious - and verifiable* - identity elsewhere in the world with just a little effort. Online verification is inherently flawed, and to use it as a buffer against threats of terrorism or money laundering is, with all due respect, hilarious.

Now that your companies are known to handle sensitive user info, I think you guys should be prepared for the attention of less savory elements of the interwebs. Keep in mind though that, Citigroup, Ameritrade, RBS Worldpay and many, many other far larger organizations, have suffered at the hands of hackers, and those data are also sold on the Darknet.

 

[Kate]

Expect to see more threads like these in the future:

 

[Addison]

Escrow is the . . . most licensed, bonded and regulated operator.

@Brandon Abbey, is this true?

Does Escrow.com have more licenses than Payoneer? Is Escrow.com more regulated than Payoneer?

You're the best person to answer these questions.