August 15, 2003

Car Sale Scam

There's a new scam in town.

You're selling something expensive, like a car. You get an offer to buy for the price you're asking. The buyer sends a cashier's check for the price plus a bunch of extra money. Buyer merely asks you to forward the extra money along to a third party once the check clears. Later he will be by to pick up the goods. The check clears, you send the cash, but no one comes to pick up the car. Weeks later, the money is gone from your account; the bank has rescinded the ammount of the cashier's check because it was a forgery.

This takes advantage of an FDIC rule which forces banks to clear a cashier's check within 5 days. Apparently, they don't actually verify the check in that time.

I have it on some auhtority that you could go after the bank if this happened to you (after all, the bank did clear the check). However, it's best to avoid the scam altogether, methinks.

Urban Legends Reference Pages: Inboxer Rebellion (Car Sale Scam)

Posted by James at August 15, 2003 2:12 AM
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