Tag Archives: Cashier’s check

IC3 Scam Alerts

The latest batch of scam alerts from the Internet Crime Complaint Center, a partnership between the Federal Bureau of Investigation (FBI) and the National White Collar Crime Center (NW3C) came out yesterday, and there are some interesting things going on out there.

I won’t past the entire text here, but the “Triangle Credit Card Fraud” was a new one to me. It works this way:

The first party is the fraudster who acts as a seller on a popular auction or marketplace site. The fraudster “sells” a product to the second party, the buyer that knows nothing about the scam. The buyer pays the seller for the product or service. The seller then needs to deliver the product or service to the buyer and does so by placing an order with the manufacturer of the product or service to the buyer and does so by placing an order with the manufacturer of the product or service, the third party. That order will contain the buyer’s information for shipping and stolen credit card information for billing. When the company receives the order, the billing and shipping information is all legitimate, thus it looks like an order being placed as a gift, so the company delivers the product or service.

That’s a big ball of text that takes a minute to decipher (and it seems to repeat itself at least once, but the underlying message is clear: you have to be really, really cautious when buying things from online auction sites.

The alerts also point out a new take on the old work-at-home scheme. This time, crooks are telling victims they submitted a resume online and using the names of well-known financial institutions and agencies (instead of the usual out-of-the-blue offer for mystery shopper work), then sending victims a fraudulent cashier’s check to purchase software or other supplies. Naturally, the victim then wires back the overage and ends up losing money. This time they’re finding victims because a vast number of people have been submitting resumes online, and I can tell you from experience: unless you’re a record-keeping ninja, it can get hard to keep track of what jobs you’ve applied for.

Overpayment Scams

Burn this into your memory:

“Cash this check, then wire money back to me” always equals scam.

I’ve said it a million times before when discussing secret shopper and lottery scams, but the actual context just does not matter. Anyone who gives you a check to cash so you can wire cash back to them is a con artist.

 It’s pretty easy to remember that when you’re looking at a letter from a Nigerian Prince, or an email that says you won the “Microsoft Lottery” or something, but there are versions of the overpayment scam that target businesses, too.

Let’s say you’ve got a property for rent. You get a call from someone who seems really interested in the space. They agree to send you a deposit to hold the property for them. You tell them it’s $800 (I’ve never been in this business, so I don’t know if that’s a realistic number or not).

A couple days later you get a cashier’s check for $3,000. You call the renter about the overpayment, who tells you to just wire the difference back to him. The check will turn out to be counterfeit.

And there it is; you are about to fall for the same old scam, just in a new context.

The same thing happens on Craigslist and online classified sites. You’re selling an item. Somebody contacts you with the intent to buy, so you agree on a price of $500. You get a check for $3,000, with instructions to wire the excess back. Exact same story.

Think about this: would you send a extra couple thousand dollars to an online seller, and trust this stranger to give you back your change? Online classifieds are risky enough without handing over four times the cost of the item you’re hoping to receive. My online classified rule is: whether buying or selling, if you can’t meet in person, you’re not interested. The short version (and homage to the Surf Punks) is: Locals Only!

There are versions of this scam that target business owners, too. The details just do not matter—those checks are always going to turn out to be counterfeit, and you’re always going to end up losing money.