A popular scam that has victimized thousands of used-car sellers is one in which the proposed buyer usually claims to be from Africa, or another country, and is eager to buy the advertised car, sight unseen, for the full asking price - no haggling. After some complicated email exchanges with the "buyer," the victim ends up with a worthless cashiers check or money order, a depleted bank account, and is still stuck with the car. It's a scam that is easy to spot when you know what to look for. How does it work? You advertise your used car for sale in a newspaper classified ad or on an "auto trader" website. Your car may be one that is in less-than-perfect condition and has high mileage such that it may be difficult to find a buyer. You are anxious to sell. You are contacted by an interested buyer who wants your car and is willing to pay your price, without seeing or examining the car. He tells you that he lives/works in Africa (or other foreign location) and that he will arrange to have the car picked up by his "agent" and shipped to him. He may say that he's in the U.S. and represents someone in another country, although his use of the EngAl Hearnlish language is poor. He offers to send you a U.S. certified cashier's check or bank check right away. You receive the cashier's check but the amount is more than the agreed-on price of the car. The reason that the check is in excess of your asking price is typically explained as a "mistake," or that the check had already been cut before setting a price, or that the "extra" money is for "shipping expenses," or any one of a number of other explanations "? all of which are false. You deposit the perfectly official-looking check at your bank. The bank credits your account for the amount of the check, although the check has not actually cleared yet, and won't be for at least 10 business days or more "? which your "buyer" knows. Uh-oh! Something's wrong Meantime, the "buyer" contacts you again and reminds you that he sent you too much money, and reminds you to send him or his agent a money order or cashier's check for the excess amount, which might be a few hundred or a few thousand dollars. You do it, because you are anxious to sell your car. You withdraw the "excess" money from your bank account (the same account where you deposited the "buyer's" cashier's check) to send to him or his "agent." A day or so later, after you have already sent part of the money, the "buyer" may contact you again and may inform you that he (or his client) has changed his mind about purchasing your car, and asks you to send him the rest of the money. You do it. You withdraw more money from your bank account. Now it gets worse Your bank calls you a few days later and informs you that the cashier's check from the buyer is counterfeit and is totally worthless. They debit your account for the full amount of the check. The bank now wants you to make good on the checks you've written from your account that you sent to the "buyer" or his "agent." Whatever money of your own that was originally in your account is now gone. Your bank wants you to pay them the rest of the money. The bank claims no responsibility in the matter. Your funds are not guaranteed under banking regulations. You're out of luck You still have your used car but you now owe your bank a substantial amount of money. The bank has no sympathy for you and offers no help. The "buyer" (scammer) was using a bogus name and can't be located. There is no one to sue or prosecute. These are professional criminals who know how to disappear and pop up again somewhere else. Law enforcement agencies are helpless to act. Unfortunately, this scenario is all too common. It happens to real people every day. Although this scam has been around for a few years, there are still many people who haven't heard about it. We're trying to help in that regard. Bottom line The details on this scam may vary, but the basic scheme is always the same: foreign "buyer" using poor English, bad spelling, bad cashier's check for more than the asking price, followed by a request for refund or forwarding of some or all of the money before the check clears the bank. Don't get caught in this one. Many people have. If you are selling a used car and a buyer from a foreign country claims to want your car, sight unseen, for your full asking price, with some complicated scheme for payment that involves you sending money to someone else, then the chances of this being a scam are about 99.999999999%. --- |
