|
Recommended:
books
Recommended
AV product:
| |
Scam Shopping Websites: Offers You Should Refuse!
Cancost.com appears to offer great prices on consumer
electronics; but there are a few details that make a
shopper suspicious. Are these indicators of a scam
or fraud, or just a unique business model that helps to
keep costs low? See our investigation of Cancost.com
below:
What is Cancost.com?
Cancost.com purports to be an seller of direct factory shipped products, from
their FAQs page:
"We have direct deliveries from factories in Japan, South Korea,
Malaysia. BUT ALL GOODS WILL BE SENT FROM OUR STORAGE IN USA. We’re not
resellers, that’s why we have such low prices. All goods in our store are
new, not refurbished, with the warranty, instructions etc. "
What do they sell?
As of late December 2007, their website shows the following:
Camcorders, Cell Phones, Desktops, Digital Cameras, DVD Players & Recorders,
Game Consoles, Games, GPS Navigation, Home Theater Systems, iPod & MP3 Players,
Memory Cards, Monitors, Notebooks and Televisions.
Who are they?
Their website identifies them as
Associated Services, Inc.
1308 Fieldstone Drive, Bedford, TX 76022
At right is a satellite photo of this location from
Google Earth. It clearly looks like
a residential address.
According to the BBB, these phone numbers are associated with them:
- (214) 717-5319
- (800) 625-9057
- (815) 715-4902
- (817) 571-6110
According to
Whois.org, a check on the registration of their domain name shows the
following owner:
Registrant:
John Kesinger
Email: kesinger1959@mail.ru
Organization: Private person
Address: 10651 W 41st Avenue
City: CHICAGO
State: IL
ZIP: 60431
Country: US
Phone: +1.8157154902
According to
posts on Yahoo Answers, the name Rick Winters is also associated with Cancost.com
What are the red flags that caused them to be investigated by CFR?
We received emails from consumers who had used them and were unhappy or were
contemplating using them. When we looked into the matter, we found the following
conditions that seemed odd to us:
- They only accept payment by direct wire. Not only is this
extremely unusual among retailers, online or off, but it offers the consumer
no security after the sale. If you are dissatisfied, you have little
recourse because your money has been transferred to their account.
This is unlike a credit card, where you have the right to dispute the sale
for up to 60 days.
- Their published business address appears to be a residence.
- The contacts for their web domain name list an email address in Russia
and a street address in Chicago, Illinois.
- As best we can tell, from the published commentaries and
Archive.org,
the website is very new, perhaps only weeks old.
- Their website has a Bizrate.com "Circle of excellence" logo on their
front page, but Bizrate doesn't list them as a vendor and a
search of Bizrate for "cancost.com" found no results.
What other sources of information about them are available?
The
Better Business Bureau says (as of December 21,2007): "The
Bureau has processed no customer complaints on this company in its three-year
reporting period." The BBB suggests using caution prior to paying in advance by
wire transfer or ACH to a firm unknown to you.
Conclusion
There is no hard evidence to indict this website as a
scam. However, the payment methods the accept, wire transfer, is considered to
be risky for buyers since the money exits your bank account with no protection
before merchandise is delivered.
A buyer would have to make his own evaluation as to
whether this is an acceptable risk.
If you have any direct experience or knowledge with
Cancost.com, please tell us about it!
|
