 Rather than sending money or goods directly to the other party (which is insecure, as one or the other party must send its item first, at the risk that the other party may not reciprocate), both parties send their items to the escrow service, which holds them until both items are received, then sends each on to the intended recipient.If either party fails to deliver its part of the deal, the other party's item will be held at the escrow service and eventually returned.In the bogus escrow scam, a scammer sets itself up as the recipient of money or goods and then requests the use of an escrow service which is self-operated.