It is definitely a scam.
My credit union posted the following recently:
CURRENT SCAM - INTERNET SALES AND COUNTERFEIT CHECKS
Have you ever advertised a vehicle for sale on the Internet? Did you receive numerous counteroffers and inquiries via email? Perhaps you received one immediate offer that agreed to pay the asking price or more? While there are many legitimate sales of vehicles and other goods over the Internet, PSECU is warning members about current scams that have affected credit union members in Pennsylvania.
The current scam:
PSECU is aware of two current auto-buying schemes based out of Africa. These schemes have been affecting members of credit unions across the United States. The auto-buying scheme typically involves counterfeit checks. These checks can be either “official checks” or “cashier’s checks” that lead the member to believe the funds are certified or guaranteed.
Some organizations classify this scheme as a form of Nigerian 4-1-9 fraud. And, although the people listed in the scenarios below were contacted by someone in Africa, please be aware that these types of scams can be committed by criminals anywhere in the world, including the United States.
How it works:
The scams generally involve an automobile sale, or another big-ticket item. In the true stories below, both people were advertising a car for sale over the Internet. Each were made good offers from people overseas, and agreed to sell their cars.
In one instance, a gentleman sent the victim an “official” bank check for $45,000. The asking price of the vehicle was only $21,000. The gentleman told the victim a story about how the bank made an error and issued the check for the wrong amount. The gentleman asked the victim to deposit the check and wire him the $24,000 difference. However, upon contacting the bank the item was drawn on, it was discovered that the $45,000 check was counterfeit.
In the second instance, a gentleman from Nigeria sent the victim a cashier’s check for $7,800. The victim was instructed to use Western Union to send $3,500 back to Nigeria to cover tax and shipping on the vehicle. Unfortunately, the item was deposited and the victim did send the $3,500 to Africa. Upon receipt of the funds, the gentleman again contacted the victim to indicate he was no longer interested in the car. He asked that the victim send the rest of the money back to him via Western Union, but the victim could keep 10% for their efforts. At that time, the victim became extremely suspicious and contacted their financial institution’s fraud investigation unit to resolve the matter.
Another variation of the scam:
Sometimes the person interested in purchasing your item advertised on the Internet will indicate that there is another person in the United States that he owes money to. Or, he may say the other person owes him money. In either case, you will receive a cashier’s check in excess of the purchase price. You are then asked to wire the extra money to the appropriate party in order to clear his outstanding debt.
This had recently happened to a woman in Pennsylvania who was selling her horse over the Internet. A person from Nigeria contacted her and said he was interested in purchasing the horse, but he also owed money to someone else in the United States. He said he would be including the other person’s money with her check. He asked that she issue a cashiers check to the other person for the difference. Luckily, the woman called the Attorney General's office and was told this appeared to be a scam.
What you should do:
If you receive an “official” check, cashier’s check, or certified check from someone during the course of a sale, you can take some precautions:
Always be skeptical if the offer comes from someone overseas or from someone you do not know. When someone sends you more than the asking price of the sale item, and requests you return the excess via wire or cashier’s check, increase your skepticism.
Call the credit union, bank, or other financial institution the check is drawn on. Tell the bank that you are conducting business with an unknown party and have received an official-looking check from them for payment. Ask to verify the account number, check number, dollar amount and payee information on the check. (It is important to verify the payee information - the name the check is made payable to. In some instances the check may have been valid at one time, however, the crook may have intercepted the check and changed the payee name.)
When calling the financial institution that the check is drawn on, find the institution’s telephone number from the phone book, directory assistance, or the institution’s website. Do not rely on the pre-printed telephone and address information on the face of the check, as the phone number may be directed to the con artist himself.
In conclusion…
Just because you deposit a check and the money is available in your account does not mean that the check is good. When a check is deposited at the credit union, we then forward the check to the other financial institution the check is drawn on. Sometimes it can take weeks for the original bank to discover the item was counterfeit. The bottom line is this – if you are going to accept a check from a stranger, you need to exercise a lot of caution.
