I’m trying to sell my car via some listings online, which I’ve done successfully in the past. But this time, I’ve gotten several emails from companies claiming they are somewhere in Africa and want to purchase my car to sell there.
Now they claim they’ll handle all the shipping, which is fine…
Obviously I’m worried about a scam, though. So here’s the question. It seems to me that if I have them wire money directly into my bank account, and if my bank confirms it has arrived, that I’d then be safe to let them pick up the car, right? I’m certainly not going to accept a check, but if these guys agreed to the wire transfer, am I as safe as I think I am, or is there some scam angle I haven’t seen?
I’ve been told there is a huge market in used Hondas, Toyotas, etc. in parts of Africa and the Middle East. Many of the cars available in countries in that part of the world are just crap (Fiats, Seats, low-end Peugots, etc.). Dealers get top dollar for used Japanese cars. When we sold our 83 Accord in WDC, we were swamped with calls for it. Same thing happened when we sold our used 86 Accord.
I would make sure that the wire transfer or deposit sits in the bank and cooks for awhile before giving up the car. Give the bank enough time to verify the funds as genuine.
It might be worth opening a separate account for the sole purpose of this transaction (and future internet transactions). It would minimize the danger of them somehow using your account information in a fraudulent manner. Plus you might get a new toaster!
(Also, look at the snopes article referenced by Frank # 2. I’d wait with the $$ in the account for a couple of weeks before shipping the car.)
Works just like the “Nigerian” scam. Basicly, they send you a bogus check and want the “change” or get your account number and rip you off that way. Idiot buddy of mine almost fell for this, and his mom has worked in a bank forever. :rolleyes:
This is a very hot scam and you ARE NOT SAFE EVEN IF THE BANK clears the wire transfer, because they can revoke it and leave you short of the cash AND the car after they can’t rectify the ligitimacy of the transfer, they can and do revoke it.
Definitely visit snopes. The secret service is buried under this latest scam from Africa.
By the way, per a discussion on bankersonline.com, the bank IS NOT LIABLE in this kind of scam. The responsibility that an ACH transfer not get recalled, or that a cashier’s check not be forged or bounce lies solely upon the account holder.
As an aside, banks do lose money on this, because they often have trouble collecting the -$19,000 balance that scams like this create every day in the accounts of the victims.
What happens if you set up a bank account, have them wire the money to the new account, withdraw the money, and deposit in your regular account? Can the bank of your second account go after you for the money?
Not only can the bank go after you for the money (and they will), the police will go after you, too! That is basically what’s called ‘kiting’ a check, and it’s considered bank fraud, and they take it pretty seriously. I’d advise against it!
P.S. This type of scam is going on wildly, with almost anything of value that people are trying to sell.
I know of a Morgan Horse breeder who is out $4,500 + expenses in this kind of fraud, and tried (unsuccessfully) to sue his bank, which had told him that waiting 7 days was sufficient to verify the Nigerian money order.
And my brother, who’s into collectible motorcycles, tells me that people selling antique Harley-Davidson’s have been bilked out of thousands this way.
Seems to me that “kiting” refers to withdrawing the money before the check clears, not after. If the bank tells you that you have the money, what is fradulent about claiming it? Seems to me the bank is the one committing fraud, claiming that the check cleared when it didn’t.
Jonathan Woodall
This makes no sense to me (which of course doesn’t mean it isn’t true. If the account holder is responsible for the check being honored, shouldn’t the bank be least be responsible for making that clear?
Is any form of payment safe? A dollar bill is essentially a fully negotiable check from the Federal Reserve. What if someone came up to you with $10,000 in cash and offered to buy your car. You go to a bank and deposit the money. They accept it and credit your account. You then turn over your car. A few days later the bank calls back and claims that the money was counterfeit, and they want their money back. Do they have a case?