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What do I do after I've narrowly avoided a financial scam?
I was selling paintings on Craigslist when a potential buyer contacted me; I let him know the paintings were still available. Later, he told me that his assistant accidentally sent me money that was meant for another seller and begged me to cash the money order, keep what he owes me, and send him a money order for the remainder. This was a little fishy (so was his failure to, in our many exchanges and despite my questioning, specify which painting he was buying), but I decided to have good faith. Today, however, the money orders (that's right, plural) arrived in the mail and it turned out that he overpaid me not by $50 or $100, but by nearly two grand. At this point, I took to the internet, realized it's probably a scam, and contacted MoneyGram (the company that issued the MOs), who told me that it's probably a fake and that I should send the MOs to them. They also informed me that in the small chance that it's actually real, the buyer can always request a refund / replacement money order.
Anyway, I was about to email my scammer to inform him of the following:
- I foudn out his money orders are likely a fake
- I am sending them to the company
- In the event that they was actually real, he shoudl contact MoneyGram for a refund or replacement
- I no longer want to do business with him
My boyfriend, however told me that I should leave this be, send the MOs to MG, but not send the email, and not talk to him. According to him, i should ignore him because any other action will simply antagonize the guy and encourage him to make further attempts to cheat me.
What is the right course of action? Please note that I am a college student that has no experience with this :( If emailing him is in fact, the right thing to do, what is a polite way of saying "Take your business elsewhere and do not contact me again"?
Also, how can I avoid scams like this in the future? What are signs to watch out for? Is there anything else I should know about selling merchandise on a website like Craigslist?
And lastly, I read that if someone attempts to cash a counterfeit check / money order, they are responsible for that money. As in, if I took that money order to the bank today, I would've had to pay 2 grand. Why is this? Technically, the money never existed in the first place and it seems like the majority of people affected are unknowing victims, not the people responsible.
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You have done the right thing by contacting the company issuing the money order. Your boy friend is also correct in that you should have no further contact with these people.
I would only add one other thing you should do before sending the money orders back to the company. Either contact Campus Police or the local County, State or City/Township Police. As this is most likely a fraud being perpetrated by this person with you as an unwitting co-conspirator the police might like the opportunity of catching this person. By contacting them you give them the opportunity and just may save someone else, who may not realize as you have, from being tricked into being a co-conspirator.
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This is fraud. This below is an example....
Sample Fraud Letters
THE MONEY TRANSFER SCAM LETTERS
Sample letter one:
Dear Sir,
Pardon my intrusion into your privacy like this, but the
Circumstances warrant that I do so.
I am Mr. Albert Young- a lawyer/consultant for some Asian
Eminent personnels who prefer to remain anonymous.
They have shown proofs to me which I have verified professionally that their claims are true, sincere and accurate as I wouldn't want my name and career smeared with mud; that they have a certain large sum of money in CASH (USD$45,000,000.00 -
Forty five million USA dollars) stashed away in security and finance houses in Europe.
My clients are politicians, ex-head of states and some of them are in asylum which explains why they prefer to remain anonymous. They have requested that I source for a reliable and capable foreigner to act as their partner who will help claim these funds from
the security company after which it shall be used for investment as directed by the foreigner (subject to a close study of feasibility expected to be supplied).The funds are duly protected professionally to avoid any unauthorized tampering or theft.
A total of 22.5% of the total sum has been set aside for you if you agree to be our partner as well as a 5% which is mapped out for all expenses which might be incurred in the process of claiming the funds from the security company.
As a lawyer, I am aware of the various similar propositions flying about on the internet and I must confess that I was reluctant to take up this task, but having carried out my investigations and confirm it is true, I can confidently tell you that this is no scam.
Kindly reply back to me should you wish to be a partner with 100% assurance that you will not regret your decision.
Awaiting your prompt response.
Sincerely yours,
Mr. Albert Young
Sample letter two:
We want to transfer to overseas $10,000.000.00 USD (ten million United States Dollars) from National Credit Bank (NCB) of South Africa. We look for a reliable and honest person who is capable of doing this all-important business transaction with us.
I am MR. BASIL RAYMOND, former Minister of State for Solid Minerals of South Africa and the CEO of LION COMMODITIES SA (PTY) LTD, Postal Address: --------GT � South Africa.
My company business activity includes Dealers in Dimension Stone, Minerals and Metals, Chemicals, Agricultural and Food & Beverages etc. We will start the first transfer with Twenty four million [$4,000.000], upon successful transfer, the second and last transfer of $6m will follow.
This amount is an excess revenue derived from company activities after last year�s audit and it has been approved to be paid into a new foreign account. Hence we are contacting you as a foreigner to assist us transact this profitable business.
However, we will sign a binding agreement before any thing else. I got your contact address from South Africa chamber of commerce. Please reply urgently so that I will inform you the next step to take urgently. Send also your telephone and fax number including the full details of the account to be used for the deposit, whether a new account or an existing one.
To build confidence with us, you can come immediately to discuss with us face to face,
After which we will make this remittance in your presence and two of us (I and Mr. Jargon T. Doorman of National Credit Bank (NCB) of South Africa) will fly to your country at least two days ahead of the money going into the account.
I will apply for annual leave to get visa immediately I hear from you that you are ready to act and receive this fund in your account. I will use my position and influence to obtain all legal approvals for onward transfer of this money to your account with appropriate clearance from the relevant ministries and foreign exchange departments.
At the conclusion of this business, you will be given 20% of the total amount, while 5% will be for expenses both parties might have incurred during the process of transferring.
We look forward to your earliest reply.
Regards.
Basil Raymond.
The whole idea of a scam is for you to be tricked into sending money in a money gram that is YOURS!!!!!! You send them the money and keep their check and later find out that its fake. I advise you to NEVER SEND money because you are being scammed. I know many situation in which this happened which is why you should be careful on Craigslist. There is also the fact that he send YOU more money. No one will just give away money!!!! BE CAREFUL and listen to your boyfriend!!!!!
Lifescomplicated
there is not damage in being extra careful
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EDIT:
Don't worry about him contacting you, just pick up the phone and call the police. Tell them what is happening. They can send someone out to your house and interview you there, or drive you down to the station if need be. Don't wait for a ride, simply because this guy DOES have your address and you want this on the record ASAP.
Good luck.
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Hi there,
Your first stop should actually be the police. This is fraud, after all. Now, it is likely a federal crime, but having it referred from your local police can sometimes speed up the process of getting something done about it.
Yes, it is a scam. Don't worry about it being a real transaction, simply because it isn't. This is a classic scam that was going on long before the internet was around.
Before you go any further, you should only e-mail the person if the federal agents you will be dealing with tell you to. Other than that, no e-mail to the scammers.
I am not sure what "further attempts to cheat" you your boyfriend is talking about here. Once you are in "super observant almost scammed" mode, you are no longer an easy target. These people are looking for easy marks. First sign you will pick up the phone to call the feds and they will want nothing to do with you.
As for sending the money orders back to the company... well, you should contact appropriate law enforcement first. What you have is evidence in what is likely a federal crime.
Craigslist has an extensive list of ways to keep yourself safe, and places to report this kind of thing:
[Link](Mouse over link to see full location)
Please check that out, and file the appropriate reports.
For the future: Yes, the bank will absolutely hold you responsible. Read the fine print on the money order.
The money order is a contract between two institutions to exchange money, based on the honesty of two individuals: You, and the scammer.
They aren't getting money from the scammer, so that leaves you.
A gal who worked at our local Subway shop did this, and cashed the check. She was prosecuted as an accomplice in the fraud.
She was given probation based on her lack of education and the surrounding circumstances, but that is a felony that is on her record for life.
You have to remember: The bank, the law, the people you know... if you cash that item, they will never 100% know if you were in on it or not. The only way to protect yourself, is to go report it before hand like you are doing.
Remember: When you cash this, you would be keeping part of the money for yourself, and sending the rest back. That makes you a financial beneficiary of a federal crime. Ooops. ;-)
I am proud of you for letting your common sense prevail in all of this. Congratulations on being one of the few who doesn't fall for something like this!
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