“Check Overpayment” Scams

“Check overpayment” scams target consumers selling cars or other valuable items through classified ads or online auction sites. Unsuspecting sellers get stuck with a big loss when scammers pass off bogus cashier’s checks, corporate checks, or personal checks. The Federal Trade Commission has issued a new consumer alert, “Check Overpayment Scams: Seller Beware,” that explains this scam and offers consumers tips on how to protect themselves and their pocketbooks.

Do not accept cash or cashier checks greater than the amount you are asking for. A potential tenant may overpay you a large sum of money in the form of a cashier’s check, and ask for the difference back. Fake cashier checks and money orders are common, and banks will cash them and then hold you responsible when the fake is discovered weeks later.

If you have been a victim of check overpayments you can file a complaint with the FTC here.

Fraudulent Cashier’s Checks

Fraudulent cashier’s checks are not limited to Foreign Country scams (Nigeria, India, etc.), but are used in a variety of transactions. Victims of a cashier’s check scam should contact their local law enforcement agency. Victims of the Nigerian cashier’s check scam should also contact their local Secret Service Field Office by phone.

Dealing with Cashier’s Checks

• Never accept a cashier’s check for an amount greater than what you requested.
• Call the bank that issued the cashier’s check when you receive it. Do not rely on the phone number that the buyer gives you. Locate the bank’s number from a reliable source, such as a phone book.
• Verify information. When calling a bank, verify the check number, the name of the person to whom the check was issued, and the amount of the check. Be sure to wait until you can verify the authenticity of the check prior to taking any further steps. Sometimes scammers wait to give you a check on the weekend or when banks are closed so that the check cannot be verified right away.

Source: rentals.com