Overpayment for Merchandise

If you have ever sold anything over the Internet, you are a prime target for this type of fraud. Following is just one example (and variation) of how this type of fraud works:

You are selling car parts for $400 and (finally) get an offer, which you readily accept. After talking back and forth via e-mail, you agree to accept a cashier's check for the $400, which will cover the car parts and the shipping/handling fees.

OOPS! The buyer has made a mistake with the check and "accidentally" sends you $4,400. The buyer contacts you right away to apologize for this error, but has a solution for you, as to not slow down the transaction. The buyer conveniently owes someone else money as well. The solution: You keep the $400 for the car parts, as agreed, plus an extra $100 for the inconvenience caused to you and then you wire out the remaining $3,900 to the other person involved.

Being the helpful person that you are, and knowing that you have a cashier's check (or money order), you agree. You cash the check, ship the parts, and wire out the $3,900 as instructed. Now the bad news! The check (or money order) is counterfeit, and you owe the bank $4,400 plus fees, not to mention that you have already shipped the parts which have been signed for and picked up. You try to reach the buyer via e-mail and receive no reply.

While there are many legitimate users of Internet sales sites, you must learn to protect yourself from fraudsters who rely on a person's good-heartedness, greed, and the lure of a money order or cashier's check. If you are contacted by anyone to participate in this type of transaction, take the following steps to protect your money and your merchandise:

• First and foremost, question "why?". Why would the buyer, who is (supposedly) located somewhere in the U.S., be sending you a cashier's check post marked from another country? Also, why are they asking you to wire money?
• Delay the transaction; send the check back to the buyer and ask for the agreed upon price. Let them make arrangements to pay the other person described to you.
• Bring the check/money order into First Banking Center and let us try and verify funds before you cash or deposit it (or send any merchandise out).
• Ask the money be sent to you in another format, such as a wire transfer (do not provide them your bank information).

If you do by chance, become a victim of this type of fraud:

• Contact the web site provider if a security/fraud section is provided to alert them to the problem as they may be able to warn other buyers.
• File a police report with your local law enforcement agency.
• Contact your financial institution immediately to alert them to the situation. Though the financial obligations are your responsibility, many institutions are willing to assist you.
• If you provided your personal account information, consider contacting any of the three major credit reporting agencies (Equifax, Trans Union or Experian) and ask that a "fraud alert" be placed on your file.
• Close any accounts that have been or may be accessed; this includes bank accounts, credit accounts, etc.
• Keep detailed records of your contacts. Start a file with copies of all reports along with information pertaining to who you spoke with, when, and what the expected outcome is to be.