What is this scam about?

How to avoid becoming a victim of this scam?

FRAUD ALERT-Cashier Check Scams

The Nigeria Counterfeit Cashier’s Check Scam has targeted hundreds (perhaps thousands) of websites across the Internet that feature classified ads (or online auctions) for automobiles, motorcycles, farm equipment, horses, dogs, etc. If you have received an email that mentions that they want to pay you for an item by a cashiers check (usually through a colleague) and they want to send you “extra money” while requesting you to wire them back the remaining difference, it is a scam!

Again, there are many, many variations of the Nigerian Counterfeit Cashiers Check Scam, and one of the most common versions of the scam involves a person from overseas posing as a potential buyer of an item (such as a motorcycle or an automobile). Initially the overseas person may request some additional photos of the item being sold (this lets the seller think the person is a serious buyer). In a later email the overseas person tells the seller that they are overseas, but have a colleague in the United States who owes them money (such as $10,000), and they will instruct their colleague to send the seller a cashier’s check for the sum of $10,000. The overseas person informs the seller to deduct the cost of the item and to send (wire) whatever balance remains to him (so if the seller has something for sale for $5,500, then they will wire the overseas person the $4,500 difference). The overseas person indicates in an email that he has already made shipping arrangements, and tells the seller that when the check is cashed, he will inform his shipping agent to pick up the item. The overseas person also requests a name and address to where the check should be sent, saying that they will send the check immediately (and believe it or not, the cashier’s check does arrive quickly…..it often comes by Fed Ex). Typically the seller will receive between 2 and 5 emails before the overseas person requests an address for mailing a check.

After the seller receives the cashier’s check and deposits it to their bank account, the bank will let the seller (the banks customer) know that the funds are available usually within 24 hours. Some people wait a week though just to make sure everything seems fine for the cashiers check, and with the funds still showing in their bank account, the seller sends the remaining balance of money to the overseas persons’ designated account (often the money is sent via Western Union or Money Gram). Several days later the bank will determine that the cashiers check is counterfeit, and will remove (deduct) the cashiers check amount from their customers account. The seller has now just become a scam victim, having lost every penny that they wired to the overseas person. It seems the overseas person (scammer) is not interested at all in picking up the item that the seller had for sale……he only wanted the seller to make a wire transfer to him. Ironically, the scammer sometimes makes more money on the lower cost items, because if a person has received a check for $10,000 for an item that was only $4,000, then the scammer would make $6,000. If the item was $7,000, the scammer would only make $3,000. Usually though the scammer adds between $2,000 and $7,000 to the actual selling price, so if a person has something for sale for $9,000, then the scammer will probably send the seller a cashier’s check for perhaps $11,000 to $16,000. Recently there seem to be more and more scam emails that are targeting lower value items, such as household items that are for sale. For example, if a woodburning stove, refrigerator, or sofa is for sale for $200, the scammer may send only $1,000, and wants the owner to wire them back $800.

Unfortunately, many banks will say the cashier’s check funds are available within 24 hours, but this does not mean that the cashier’s check is good. It may take two or three weeks to know if the check is good or not, but by then it is too late for the victim (during this time they have already wired the money to the overseas person, and they can’t get the money back).

There are several different versions and twists to this scam, and some emails indicate that the shipping costs or crating costs can also be deducted from the cashier’s check sum. There are also several different locations mentioned in various emails, some saying the person is from London, and some mention traveling in South Africa, Nigeria, Africa, and we have even seen an email that mentions Canada. (Some emails do not mention a country). The reality is, it doesn't matter what country they say...the fact is that the wired money does go overseas, and most often you can't get your money back. There is even speculation that the money could be funding some terrorist activities. There are probably many cells of these scammers in many countries, including in the United States.

****See Example below***

People selling horses are receiving buyer inquiries from a third party regarding the purchase of a horse from a potential buyer in Nigeria, Africa, London, Hong Kong, AND OTHERS. This inquiry commonly attempts to arrange the purchase of the horse with a cashier’s check covering the price of the horse and shipping. After the horse has been shipped, they commonly ask you to refund the shipping charges as part of a “finders’ fee” arrangement. They may also send you a check larger than the purchase price and ask for a refund of the difference.

From: pierro
Date: January 30, 2007 9:31:20 PM CST
To: Jo
Subject: THANKS !!!!!!!!!!!!!!!

THANK YOU SO MUCH FOR YOUR QUICK RESPONSE, I WILL FORWARD YOUR ADDRESS TO MY CLIENT SO THAT HE CAN MADE OUT THE CHECK ON THE INFORMATION YOU SEND TO ME WITH IMMEDIATE EFFECT SO I WILL GET BACK TO YOU AS SOON THE CHECK IS BEEN MAILED OUT TO YOU....... HOPE TO HEAR FROM YOU SONNEST.

PIERRO

Jo wrote:

Hi Pierro,

I am very happy to here that she will go to a good home, Can you please give me a call so we can get this deal done. I would love to talk to you and maybe I know your trainer!

You can make the check to XXXXXXXXXX
Address is XXXXXXXXXXXXXX NC XXXXX

Please call me as soon as possible, there is a lady that wants to buy her and she already rode her and fit well with her. I will not sell her until you call me but do it soon!

Thank you!
Jo
xxx.xxx.xxxx

pierro wrote:
hello jo,
i will like to let you know that the horse is going to a nice and lovely home and we already have a good trainer for the mare. my client is keenly interested in buying the horse, i also want you to considered it sold. so right now i will like you to send me the full name to be written on the check, full contact address where the check will be mailed to, and including your contact phone number. hope to hear from you soon.

pierro

Jo wrote:

Hi Pierro,

Thank you for your interest in DA Ms XXXXXXX. I am very happy you decided to get the mare, I have a couple of questions my self on where the mare is going and such. The owner is very much in love with this mare and it is kinda important for her to know where she is going.

Please give me a call on my cell_____________, so we can get everything done. Please call me as soon as possible, there is a lot of people looking at her!

Thank you!!

Jo

pierro wrote:

Hello Jo,
Thanks for the reasonable price, i have contacted my client and
he has agreed to pay for the mare and i have already contacted my
shipping agent also for the pick up. A check of
40,000 will be made out to you in which you will deduct the cost of
your mare and have the balance sent to the shipping company via
western union money transfer for the pick up as soon as possible.
I will like you to give me your following information for the
payment to be sent to you. FULL NAMES to be written on the check,
FULL CONTACT ADDRESS where the check will be mailed to, and your
contact phone number. Please consider it sold to me. Please send me
pictures for proper viewing
Regards,
Pierro

Jo wrote:

HI Pierro,

First Let me thank you for your interest in DA Ms ________. She is a very sweet mare, and she is ready to show. This mare was first price at $30,000, but I convince the lady that if she wanted to sell her fast, she may want to ask less than she worth. She is a very nice mare, very sweet, not problem with soundness or anything. This is the one in a million mare. She will talk to you went you come in the barn and run to you when you go get her in the pasture. She load in the trailer perfect, don't crib, straight leg. The owner need to sell her, she have no time to ride her, and the mare is getting waisted.

Let me know if you are interested, I can send you a video. You can also call me at _____________.

Sincerely,

Jo

pierro wrote:

Hello Seller, i'm very interested in buying your horse which you place on
myhorseforsale.com,i will be so happy if you can get back to me with your
bottomline price and also with the present condition of the item.The
mode of payment will be cheque. Please send more pics for proper
viewing.

Note.I will be solely responsible for the shipping arrangement.
I awaiting your response.

Regards,

Pierro

Links

• Federal Bureau of Investigation
• Internet Crime Complaint Center IC3