How Do Overpayment Scams Work?
Posted on August 12, 2009 by Online Scams in Articles
How Do Overpayment Scams Work?
by Garen Arnold 8/12/09
Most victims of overpayment scams are people trying to sell high priced goods, such as vehicles, motorcycles, or nice electronic equipment. Anything that sells for a substantial amount of money can become the target of criminals working an overpayment scam.
This is how it goes down. Say you have a car that you want to sell. You go to Craigslist (please see Craigslist scams), eBay, or even smaller local newspapers or websites and list the item. You describe all the fine details that make it well worth your asking price, but the scammer actually doesn’t care about any of it. They are not interested in purchasing a car at all.
Inside Look At Overpayment Scams
But, they will send you a message stating that they are very interested. They may say they have the money outright, but most will make a very good offer or even pretend to try to talk you down as if they just really want it but need a good deal on it.
Once you agree on a price, they are likely going to demand that you consider it sold and not entertain any other offers from others. They may even ask for your personal contact information and want it taken down off the listing site, if that is possible.
They now have you right where they want you. Their real competitors for the product are out of the picture and you are just waiting for your money, right? This is where the scam comes into play. Most will mail you a check, never wanting to meet you in person even if it is from a local site and they are supposedly in your area. You will get what looks like a legitimate check, but it will be made out for a higher amount than the price you agreed upon.
If you are smart you will question this amount before depositing the check, though some people consider it is a mistake they can take advantage of and just deposit it without saying anything. This is a big mistake! The next line of communication with the scammer/buyer will be to explain the overage on the check. There are many common explanations a scammer may use, but often they will simply say it was a mistake. Now, what? They need the overage returned to them, right?
Wanting the item sold and trusting this nice, friendly buyer, you will transfer the money back to them or maybe even meet them to give them the excess back. You will later discover that the check they gave you was not legitimate and the bank has refused it. You are now on the line for all the money while the scammer disappears never to be heard from again…with your money! It is important to note here that even if your bank accepts a check and puts part or all of the money into your available balance right away, that does not mean the check went through and has been approved. It can always be reversed later on.
Be Safe….Don’t Fall For Overpayment Scams
To be safe from this type of scam, never take checks over the amount you agreed to take for the item. In fact, don’t take checks from someone you don’t know at all! They can get a cashier’s check from their bank just as easy as they can mail a check. Trust your gut instinct; if something looks too good to be true, it probably is.
A lot of these overpayment scams operate on Craigslist, please check out this article on, “How Craigslist Scams Work.”
