I’m using Craig’s list for the first time and I think I’m being scammed but don’t know how it works.
I just received a cashier’s check out of nowhere from a person I don’t know. I think this is related to an item I’m selling as I provided an address & phone number thinking it was real. Though the check is for far more than the discussed amount.
So lets say the check was for the amount discussed and I cashed it, how does the scam work?
You cash/deposit the check, the check “clears”, they ask for the extra amount back, weeks later, the check bounces, you’re liable for the entire amount.
Same applies if it’s for the exact amount. Get cash at time of sale.
It’s just that simple. They are going to try to get you to send them money. Their check was worthless, if you cashed the check the bank will take the money back from your account or send it to collections. People in the know pay the scam forward, they find someone else to cash the check for them and keep the money and that other person is now in debt to the bank. I guess it’s not paying it forward, it’s stealing it forward.
Thank you both. Why are cashier’s checks so worthless? Shouldn’t banks stop taking them? How can it take so long to clear?
Should I report this to anyone? Craigslist or the FBI?
Looks like I’m reporting it to
www.uspis.gov & The Federal Trade Commission at FTC Complaint Assistant (www.ftccomplaintassistant.gov)
Cashier’s checks are not worthless. Fake checks of any kind, on the other hand, are. The reason it takes a long time for a fake check to be discovered is because of bank regulations that stipulate maximum hold times for checks. Funds from a cashier’s check must be made available immediately. The fraud isn’t discovered until your bank attempts to submit the cashier’s check to the issuing bank for payment.
Sounds like a seriously broken system that makes cashier’s check all but valueless.
Banks have to have a way to put a stop on a cashier’s check, like any other.
Most people probably don’t know that that’s the case, that’s why the scam works.
Banking regulations require that the bank you are cashing the check through, any check, provide you with the money in a set number of days unless they find fault with the check. The reason for this is to prevent the bank from holding your money for an inordinate amount of time so the bank can make money off it. Cash a check for $100k and the bank tells you the funds will not be available for 90 days, while they use the money, would be unethical. And we all know how ethical banks can be about making money.
So they have to provide you with the funds shortly. Crooks have exploited the time difference between when the bank must provide the funds and when the check is certainly cleared and good.
Be careful about depositing it. I can’t find the link right now but a man went into a bank (Chase IIRC) and told the tellers that he was concerned about it being a Craigslist scam cashiers check. The teller told him not to worry and to deposit it to see if it clears. He was arrested the next day for fraud.
There is no way I’m depositing it. I’m holding it in case the Post Office or FTC want a picture of it or the original.
Also, if someone gives you the money they got by robbing a bank, don’t go to the bank to deposit it and say “I think it’s stolen money from a bank robbery”. Also avoid saying “I think it’s counterfeit”, and “I think it has anthrax on it”.
Cashier’s checks aren’t valueless. Fake checks are.
It’s like getting mad at the government for issuing worthless currency when, in reality, you just found yourself with a couple of counterfeit twenties.
Mrs. Cad got a scam check. It was sent to her to be a mystery shopper where she deposits the check and uses it to pay for items. I notified the bank it was supposedly drawn on, USPS since it was delivered by US Mail, and the FBI since it crossed state lines and the bank was in Texas with the return address in Connecticut. No one ever replied.
Make a copy. Then go ahead and deposit it. Just do not ship anything or pay anyone until about a month. It could well be good.
No, do not deposit it. Trust your gut and do not let it process through your account. You could pay fees, have your reputation damaged with your bank, and even inadvertently provide your banking details to the criminal party depending on how your bank stamps the back for processing.
Moderator Note
This is incredibly bad advice. Do not advise people to do things that may well be illegal. Based on all the previous information here, it is extremely likely that this check is fake.
Do not dispute this note or continue this argument here. Doing so will result in a warning.
Colibri
General Questions Moderator
This is such bad advice. There’s just zero possibility that you get a cashier’s check for way more than the value of something and it’s legit. This has never happened.
Best case, you find out what you already knew, that it’s a scam, and you have to deal with a bunch of annoying paperwork from the bank who is annoyed that you tried to deposit a fraudulent check and presumably got paid interest on it until they figured it out.
A check is a legal document. You shouldn’t accept one from an entity you don’t trust any more than you should sign a contract with an entity you don’t trust. Legal documents are very useful ways for parties that generally trust each other, but they’re really not useful for anonymous transactions.
Craigslist will be filled with all kinds of scammers. That’s part of its charm. You’ll have to expect them and be able to weed through them to get to the real people. Any offer to pay by check, proxy, or escrow is a scam. Any offer which asks you to ship the item is a scam.
As for general CL guidelines, just list your zip code or general part of town in the ad rather than your address. Limit yourself to dealing with local people who pay with cash. Unless they have to come to your house, bring the item to a public place and meet there. Be prepared for people to haggle and offer you crazy low prices. CL can be a hassle, but it can also be worth it as long as you know what to expect.
How safe is PayPal for Craigslist transactions? Any scamming there?