Avoid Getting Scammed in a Counterfeit Cashier Check Scheme

Large ticket items posted for sale on the Internet or in classified ads often attract criminals who prey on sellers. One of the most typical scams involves forged cashier's checks.

The criminal poses as an interested buyer and typically makes an offer via email or even a phone call to the seller that not only includes the purchase price, but additional money for shipping and delivery. Often the "buyer" will claim that he has purchased items in diverse geographic locations and has a company, partner, or employee who is going to pick up the merchandise and deliver it. The "buyer" claims that he will send you a cashier's or certified bank draft that will cover the cost of the shipping to pay the transfer company or associate as well as the price you set on your item for sale. He will give you a very reasonable sounding explanation for handling things this way, such as avoiding having to cut multiple checks to different parties, having to have cash to hand over to his shipper, and being constrained by time or multiple purchases across the country.

He will also tell you that you are guaranteed no risk, because he will be willing to wait until you have cashed the check and it has cleared your bank before the item is shipped. All you have to do is wire the shipping funds back to the "buyer" as soon as the check clears your bank. How can you lose? Here's how:

Once you deposit that wonderfully crafted cashier's check, and your bank notifies you it has release the funds, you wire the excess money for shipping back to the "buyer" or his associate as instructed.

Banks often release funds for cashier's checks within a day or two. Many seller's think this means the check has cleared, and they proceed to wire the "shipping" funds portion to the "buyer". Many sellers then start spending the rest of the proceeds from the check.

Within a few days, they receive a notice from their bank that the cashiers check did not clear, and the bank is holding the seller accountable for the entire amount of the fraudulent cashier's check.

In a nutshell, the things that should make alarm bells ring in your head when beginning a sales transaction with someone you don't know are:

1. If they ask you to wire money, they are scamming you. You are the seller. They are the buyer. There is absolutely no legitimate reason for you to send them money, before or even after they have paid you.

2. If they refuse to give you a street address and full name, they are scamming you. Even if they do give you a full name and street address, it will be false and untraceable.

3. Legitimate buyers don't buy big ticket items sight-unseen, unless they are complete fools. If someone offers you thousands of dollars for an item based on a picture you posted, beware. They are either idiots or crooks.

4. Always remember, if a deal seems too good to be true, it probably is too good to be true.