High risk

Escrow

Escrow is an arrangement where a trusted third party holds funds (or assets) until agreed-upon conditions are met, then releases payment to the seller and goods or confirmation to the buyer. Legitimate marketplaces and larger investment platforms often use built-in escrow-like holds to protect both sides; a deal that insists on skipping escrow and paying the seller directly and immediately is a common scam pattern.

Related topics

Other terms

Browse the full glossary →