How to Avoid Check Overpayment Scams

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If you are planning to sell an item over an online auction or in your local newspaper beware of the latest check overpayment scams. The scam begins with someone responding to your ad. This person wants to buy the item and use either a cashier’s check, personal or corporate check to pay. Seems legitimate but then at the last moment, the person writes the check for more than what you are selling the item for, and asks that you wire the difference back once you have deposited their check. You go to the bank and deposit the check. Everything seems fine so you wire the funds back to the person. A few days later, the check you deposited bounces but you are still liable for the entire amount. Basically, the check was counterfeit and not even the bank teller could tell. Following these steps will help you avoid becoming a victim to these clever scams.

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Instructions

Difficulty: Moderate

Step1

If you are selling something (or purchasing for that matter) be aware of the person you are dealing with for the transaction. The Federal Trade Commission encourages you to independently confirm the purchaser’s name, street address and telephone number.

Step2

This is the most important piece of advice: Do noy accept a check from anyone for more than the purchase price. This might be tempting but refrain from doing it. Request that the purchaser write the check for the proper amount and nothing more. If the purchaser refuses to abide by your request, return the check and do not send the item.

Step3

Another option is to accept a different method of payment—many sellers now use an online payment service or perhaps an escrow service though there might be a charge for the latter. Be sure to read the company’s terms of agreement before signing up for the service. If there isn’t anyone in customer service to call, it’s probably best to not use the service unless it’s a reputable and established online payment service.

Step4

If you do decide to accept payment by checks, request that the check be drawn from a local bank or a bank at least with a local branch. Also, call the bank where the check was written from to confirm the check’s authenticity.

Step5

If the purchaser insists that you wire back additional funds, immediately stop dealing with this person. They are not legitimate and are trying to scam you.