If you are able to discern the more common forms of scams in today’s environment, you can save yourself a great deal of stress – and financial ruin. Here’s a look at one that could happen to you.
How The Scam Works
You place an ad for your collectible, motorcycle or electronic equipment on a specialty Web site. You’re contacted by a buyer. At first, nothing appears to be amiss here. You receive a cashier’s check as well, and all seems kosher. The only problem is the check is written for $5,000 over the sale price. The buyer says it was an error and asks you to deposit the check and refund the overpayment using a money transfer service. A week later, your bank informs you the check was fraudulent. There have been no funds after all deposited into your bank account. Alas and alack, the item has been sent out already to the “buyer”, with $5,000 in actual cash.
Funds are withdrawn from your account if it is ever discovered that you have been paid fraudulently. In this type of scam, you could lose both the amount of the overpayment and the item you were selling. Oftentimes you would find out about the scam once it’s all over and done, because many banks would let the funds be drawn before the item has a chance to clear.
The Solution
Before agreeing to a transaction which involves money transfer, give pause to these tips:
Don’t use a money transfer service to send funds to someone you don’t know.
If a buyer seems to be all too eager to make payment immediately, he/she might be too good to be true. If a buyer is really sincere in his/her intentions, he/she will barter for a lower price and ask a lot of questions.
Make inquiries and ask your bank how much time it would take a check to clear. Your bank may allow you to access the funds, but do not misconstrue this as the check actually clearing.
Do not send any money transfer for overpayment (if need be) unless the check has cleared first.
Some bowdlerized food for thought. If a deal sounds too good to be true, it probably is.
Western Union and other money transfer companies are making it a point to educate consumers all over the world about fraud and how it can work. Any time you suspect that you’ve been victimized by a fraudulent individual, contact your bank, the Attorney General and notify your local law enforcement officers.
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Tags: credit card, Credit Card Fraud, finance, loans, personal finance