Avoiding Scams In The Online Classifieds, Part 1

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If someone is offering to pay you more for an item than you’re selling it for, it’s a scam.

Online classified ads abound with scams, mostly involving check-cashing schemes. The scams target victims through a KSL posting, perhaps for a reason like buying a wedding dress or hiring the potential victim as a secret shopper.

In either situation, the scammers send victims a check for more than the amount owed, then the person is asked to deposit the check into their bank account and send them the difference via Wal-Mart or Western Union, for example. While a deposited check takes a couple of days to clear, wired money is then withdrawn from the victim’s account instantly.

By the time the bank discovers the fraud and reverses the deposited check or money order, the excess money has usually already been sent to the fraudulent buyer, and the item may have been shipped. In every instance the bank will pass the loss back to the victim, who deposited the counterfeit check. This means the victim is accountable for the cash sent as well as any fees, and likely will not be able to retrieve the item if it has shipped.

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1. Phone number listed is wrong.
2. Buyer or seller explains that they are currently out of the country.
3. Buyer offers to pay with a money order or cashier’s check for significantly more than the asked-for price.
4. Seller asks to have money wired to them or paid via an online service.
5. Buyer or seller explains that a third party or service will pick up or deliver the item.
6. Email inquiry is poorly written, generic, or strange sounding.
7. Offer is simply too good to be true.
8. Seller or Buyer says that KSL will handle the transaction. (KSL is NEVER involved in any transaction between buyer and seller. Nor is it associated with any online payment company. Anyone who claims otherwise is a scammer.)
9. Seller or Buyer says that KSL offers a purchase protection or warranty program. (KSL DOES NOT offer any type of purchase protection or warranty program nor does it partner with any third parties to offer such program. Anyone who claims otherwise is a scammer.)

If you accept a cashier’s check as payment for something you have sold or rented, make sure it has cleared the issuing bank before you refund any money or surrender possession of the vended item. It may take two to three weeks for the banking system to determine if the check is counterfeit, so even if the funds look like they’re available (and even if your bank tells you they are), hold onto whatever it was you sold and the funds you received for it for three weeks.

These messages are simply an annoyance, and cannot harm you if you don’t respond to them. If you are suspicious let them know that you are not interested or just ignore their offer. It is not necessary to forward or relay these messages to KSL.
However, if you have been scammed and wish to report it, call the U.S. Secret Service at (202) 406-5572 or write to U.S. Secret Service, Financial Crimes Division, 950 H St. N.W., Washington, DC 20223. Also, call your state attorney general’s consumer protection division.