Fraud Prevention: Case Study 7 - Extremely Low and Attractive Price

Problem:

“I wanted to purchase some brand new 'Apple iPod Touch 16 GB' at cheap rates, so I found and contacted a supplier from China who was selling them at a very low price. I wanted to purchase 50 iPods and he offered me USD $30 per piece. I made the payment in full, but then the supplier showed his real face and refused to deliver the iPods unless I bought more from him. He also blackmailed me that he would increase the price of each iPod as well. I lost a lot of money due to this fraudulent deal”.

Evaluating this Case:

1. If you find a price which is unreasonably low, especially over 50% below the market price, then you should refrain from buying it. The retail price of a brand new 'Apple iPod Touch 16 GB' is over USD $200. Thus, getting it from a Chinese supplier for $30 per piece is unrealistic. It's unbelievable to find such a product at such a low price, regardless of the location of the supplier.

2. It's not advisable to make a full payment, especially when dealing with a supplier for the first time. Avoid using Western Union and look for a secure payment method. For example, Escrow is a service that is designed to secure your payment. Your payment is released only after you receive your products.

3. You need to be careful when you come across suppliers with extremely low and attractive prices. Remember, when you see a price too good to be true, the chances are it may not be true. So, always be cautious and do not rush in such a situation.
 

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