Be cautious if you are selling a car online, as scammers may target you. The Federal Trade Commission (FTC) in the United States issued a consumer alert on February 27, warning the public to beware of counterfeit check scams.
The scam typically starts with a car buying inquiry. Scammers pose as buyers, claiming to be out of town and unable to personally inspect the vehicle. They will send a check for an amount exceeding the car price and claim it is an “accidental” overpayment, requesting you to refund the excess amount. However, once you refund the money, the supposed buyer and funds will disappear.
The fake checks may appear genuine, and when deposited, the money may even show up in your bank account. However, it could take several weeks for the bank to determine that the deposited check is counterfeit, and once confirmed, the bank will reclaim the funds. In the end, you will be responsible for returning the money.
How can you prevent this? Firstly, reject checks exceeding the selling price: if the check amount sent by the other party is higher than the price and requests a refund, it is most likely a scam. Secondly, do not wire money to the other party: regardless of whether the other party asks you to refund through gift cards, money orders, cryptocurrencies, or other means, do not comply, as recovering this money is nearly impossible. Thirdly, when selling cars online, consider using secure payment methods: conduct transactions through escrow services or online payment platforms to reduce risks.
Regularly educate yourself on counterfeit check scams and learn how to protect yourself. If you encounter counterfeit check fraud, report it to the FTC via the link: ReportFraud.ftc.gov. If you have already made payments to scammers, take immediate remedial actions and report to the relevant financial institutions, link: https://tinyurl.com/yky3usnu.