Quote:
Originally Posted by retiredguy123
This may sound like overthinking it, but how do you know an online bank is actually FDIC insured? I know you can check with the FDIC and match the bank name with their FDIC insured list. But, I would hesitate to send a large amount of money to a "so called" bank who only has a website and says they are FDIC insured. There are lots of scams on the Internet.
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THIS! ^^^
I've been working with internet businesses for 20 years (not banking) so tend to be more aware of flags to look for regarding online businesses.
Anybody can create a professional looking website but, it could be a fraud or cheesy business.
Couple quick examples...regarding much smaller sums of money than we're talking about here but, still examples.
1) A friend booked a limo service to pick her up at LAX and take her to her lodging. She got an email confirmation like normal but, they never came. She's at the airport waiting, trying to call them, got voicemail or whatever. Could never get in contact. Money 100% wasted; took a cab. I told her it was probably just a "booking service" and not an actual limo company. Scam. I wonder if they were in Nigeria? Lol...
2) Friend ordered clothes online and saw that she'd be shipped from Indiana. Ok. Well, she got the stuff after about 3.5 weeks, it didn't fit well, she checks the site for return instructions and learns she has to send it back to China to get refunded. The postal cost was going to be high relative to the product cost so, I think she just kept it. It's probably sitting in a drawer. Money 100% wasted.
I'll just share my minimum tests for buying from an unknown business online.
They have to have a posted phone number. Period, otherwise, forget it. In the majority of cases, I want to see an address too. Also, of it's something I might return, I
want to see clear and complete instructions posted on the website before I buy.
Lastly, for any company, you can install keywords like this in a search engine before conducting business: ABC Company bad reviews, Widget Company a scam?, or look it up on the Better Business Bureau website, etc.