Internet SCAM Targeting Auto Classifieds

[Ereynolds72]

I'm sure everyone on these forums are too savvy to fall for this one but I thought I'd bring it up none-the-less:



I'm selling a GMC Jimmy on the autotrader.com website. I was contacted via email from someone acting as an agent for a buyer. Over the period of a couple weeks I ultimately received a cashier's check for nearly twice what I was asking and was directed to take the balance and send it via Western Union to two different parties, the shipper and the agent.



I deposited the check into my account... this is where people get screwed because my bank did not put a HOLD on the check. I could have taken the money and sent it Western Union as requested. Then when the news comes back that the check was fraudulent, I would be responsible for the money I took from the bank.



I spoke to the branch manager and told her that I was skeptical of this whole deal and actually requested that they verify the funds immediately. Sure enough! The check was a fraud.



People have actually fallen for this. Don't let this happen to you.

 

[trqmnstr]

Welcome to the Internet!

 

[dmurdock]

Believe it or not, one of the most worthless checks you can get now is the good old cashiers check. My friend sold something on ebay and got a cashiers check for 300 bucks. He took it to his bank and they called the issuing bank to verify and they said "yes, it's one of ours". Well, a week later he finds out it was a fraud. Apparently somebody made a crapload of duplicates of the same cashiers check and all the other bank did was check to see if it was a valid number. His bank ended up eating the loss because he had specifically asked them to verify if the check was good or not (I think the issuing should have eaten the loss. . but oh well).

 

[DKarvwnaris]

His bank ended up eating the loss because he had specifically asked them to verify if the check was good or not (I think the issuing should have eaten the loss. . but oh well).

I am amazed the bank actually sucked up the loss. They usually will not acklowedge any responsibility for other institutes failure to comply with check verification. I had a customer pull something similar to this on me a few years back. Bottom line for me is unless I am standing inside their bank and pulling funds immediately from the check, I will not accept them. With the exception of good old CASH, electronic transfers and credit card payments if your bank allows are all I deal with anymore. Pay pal is a good altenative if your bank won't support credit card transactions without a merchant acct, just make the buyer pay the processing charges/fees.



I can't see how either bank is responsible for a con artist and thief's ability to defraud them, they are operating outside the law and preying on them. Maybe a bank's insurance is bound to cover it, but that only brings our service fees higher in the end. If someone made duplicate copies of a check you wrote and submitted them for payment in a single day or changed the amount on the check, you would not expect your own bank take the hit on it, (wouldn't anyways. I would put the claim on my insurance and demand the crook was prosecuted to the fullest extent possible, (and/or demand stronger penalties for this). That's the only thing that is going to stop this issue other than eliminating paper checks all together. I bet we're not far off from this now unless they are brought to the same security standard as federal currency and laws which is doubtful.