EFP 135: How We Lost $25K To Russian Scammers – Part 1

Justin Cooke

May 2, 2015

We recently published a blog post about how Russian scammers defrauded us for more than $25K.

In today’s podcast, we dig into the details behind the story and explain some of the lessons we learned throughout the process.

The Low-Down Details of How We Got Scammed

This is actually a two-part episode. Part 2 will include an interview with the attorney that helped us with the case and his thoughts on how to protect yourself from online scams and frauds.

We’re sharing this in the hope that it helps you avoid a similar scam in your business.

Check Out This Week’s Episode Here:

Direct Download – Right Click, Save As

Topics Discussed This Week:

  • How We Realized We Were Being Scammed
  • Assessing The Damage
  • The Empire Flippers Strike Back
  • Reviewing Legal Options
  • A Happy Ending?

Lessons Learned:

  • Take your customers’ concerns seriously and look into it immediately.
  • Escrow isn’t the answer.Wire transfers IS the answer.
  • Asking for help can work.
  • Talking about this transparently helped us recover the sites.
  • There should be a global blacklist brokers and industry professionals can use.

Mentions:

Spread the Love:

“I needed to know how many of these cases we could have been liable for.” – Joe – Tweet This!

“Our immediate action was to stop the bleeding and figure out the path to take.” – Justin – Tweet This!

“The pawnshop is where you look for stolen goods. For us, it was Flippa.” – Justin – Tweet This!

So – what did you take away from this episode? Have you ever dealt with credit card fraud? Let us know in the comments!


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Discussion
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  1. Jeff Doehler says:

    It’s awesome how you guys are following your style of being open and honest about this, even if it’s a painful topic! I’m glad it more or less worked out in the end, it definitely proves your point of focusing on building authority and trust.

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