jtijani
29-11-2004, 22:16
The police are warning consumers of a new scam in which victims unwittingly send money to conmen. According to the Metropolitan Police Specialist Crime Directorate, victims of the con, which has been dubbed 'criminal cashback', have been duped an average of £4,000 each.
The crafty scheme targets consumers selling goods on the Internet or in classified ads. Detective Chief Inspector Stuart Dark says victims are initially contacted by criminals who convince them of their genuine interest in the goods on offer. However, when you receive payment, the cheque or banker's draft will be for an amount that is considerably more than your asking price.
Consequently, after you receive payment the 'buyer' will ask that you refund some or all of the difference by way of money transfer. (You may even be offered a small sweetener for your troubles!)
To date, victims of 'criminal cashback' have included a Porsche owner who was asked to accept a bankers draft for £43,680 for his cabriolet that was advertised in Autotrader for £37,990. This was on the understanding that he repays the £5,690 difference by way of money transfer once the funds cleared.
According to the police, they have recently received 25 to 30 notifications daily of criminal-cashback activity on their Fraud Alert website (the site also has details of other scams). The police added that consumers that have been duped do so because they are unaware of how the bank clearing system works.
When a cheque is paid into a bank account, it will be shown as a credit, and money up to its value can be drawn out once the funds are cleared. However, if it is subsequently shown that the cheque or banker's draft is fraudulent, then the bank has the right to claw back the money.
On average, about six to seven million cheques are processed daily with about 30,000 cheques returned unpaid within 5 days for various reasons. However, a tiny number are returned much later due to the rise in fraudulent cheques – it can be weeks before bogus cheques or bank drafts are identified.
Unfortunately, there is no way around this problem if you agree to accept payment by cheques or bankers drafts. Therefore, it pays to be especially vigilant if you are ever offered payment above your asking price for goods.
Alternatively, insist on CHAPS, which is an electronic bank-to-bank.payment scheme. It costs around £15 to send money by CHAPS. However, if the person who is buying your goods is not prepared to even share the cost then it is perfectly reasonable to wonder why.
Personally, I would rather walk away from a dodgy deal than to be caught up a creek without a paddle. The police said one man advertised his canoe for sales on the Internet for £320. His buyer stated that he would pay him £3,500 on condition that the difference is sent to a 'shipping agent' once the funds were cleared!
The crafty scheme targets consumers selling goods on the Internet or in classified ads. Detective Chief Inspector Stuart Dark says victims are initially contacted by criminals who convince them of their genuine interest in the goods on offer. However, when you receive payment, the cheque or banker's draft will be for an amount that is considerably more than your asking price.
Consequently, after you receive payment the 'buyer' will ask that you refund some or all of the difference by way of money transfer. (You may even be offered a small sweetener for your troubles!)
To date, victims of 'criminal cashback' have included a Porsche owner who was asked to accept a bankers draft for £43,680 for his cabriolet that was advertised in Autotrader for £37,990. This was on the understanding that he repays the £5,690 difference by way of money transfer once the funds cleared.
According to the police, they have recently received 25 to 30 notifications daily of criminal-cashback activity on their Fraud Alert website (the site also has details of other scams). The police added that consumers that have been duped do so because they are unaware of how the bank clearing system works.
When a cheque is paid into a bank account, it will be shown as a credit, and money up to its value can be drawn out once the funds are cleared. However, if it is subsequently shown that the cheque or banker's draft is fraudulent, then the bank has the right to claw back the money.
On average, about six to seven million cheques are processed daily with about 30,000 cheques returned unpaid within 5 days for various reasons. However, a tiny number are returned much later due to the rise in fraudulent cheques – it can be weeks before bogus cheques or bank drafts are identified.
Unfortunately, there is no way around this problem if you agree to accept payment by cheques or bankers drafts. Therefore, it pays to be especially vigilant if you are ever offered payment above your asking price for goods.
Alternatively, insist on CHAPS, which is an electronic bank-to-bank.payment scheme. It costs around £15 to send money by CHAPS. However, if the person who is buying your goods is not prepared to even share the cost then it is perfectly reasonable to wonder why.
Personally, I would rather walk away from a dodgy deal than to be caught up a creek without a paddle. The police said one man advertised his canoe for sales on the Internet for £320. His buyer stated that he would pay him £3,500 on condition that the difference is sent to a 'shipping agent' once the funds were cleared!