Q: How are scammers using PayPal to scam people?

Started Feb 26, 2012 | Discussions thread
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Re: 11 days - foreign checks
In reply to Spudmuncher, 10 months ago

enemjii wrote:

Doug J wrote:

Next comes "his shipping company", the amount that the spoofed email says has been sent is for more than the purchase price of the camera. The scammer will ask you to wire to excess money to his shipping company by either Western Union or MoneyGram.


I would say Doug is spot on. This is what is referred to as an "overpayment scam" (and probably other names). The buyer will send you a cheque for the cost of the lens, plus some extra money. They will ask you to pay the extra to their "shipping agent" who will then arrange shipment.

You receive payment which "clears" into your bank and then pay the extra to the agent. Then, several weeks later, the original cheque/payment bounces as the cheque/account is fake. The money is deducted from your account and you are out the extra that you paid to the "shipping agent".

This scam relies on the fact that banks will "clear" funds into your account before they are actually processed. Clearing a cheque drawn on an overseas account can take several weeks, longer when they can't find the account because it is a fake. The bank of course reserves the right to claw back the money from you if a cheque bounces or is fake. The funds clear so you pay the extra onwards. Your payment is valid so it goes through and they have your real money, then their fake payment later bounces.

In many cases the buyer thinks they are safe because the item for sale hasn't even been shipped yet. They are so focused on not getting scammed out of their expensive item that they aren't paying attention to the smaller "extra" payment, which is what the scammers really want - cash.

Is the amount of time issuer can stop payment ...

A foreign check is not cleared until it is cleared. You get the sum entered into your account but it is clearly labelled NOT cleared and the funds are not available to you.

If you pay out before the funds become availalbe, then that is your look out.

Thanks, Murph

Foreign checks ... Big no no even if it was legit. Forex fluctuations can kill your profits.

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