There are many different types of fraud and scams going on around us. Please read the following example, and click on the links below for more information on Fraud Scams:
Counterfeit Cashier's Check Scheme
This scam targets individuals who post online classified advertisements on websites, such as AutoTrader.com to sell merchandise. Typically the seller, which is the victim in this scheme, will receive an email from an agent representing an international buyer. The agent and victim come to an agreement on price through email.
The agent then proposes the transaction be carried out by using a cashier's check that the represented buyer has designated for the purchase of the merchandise. The amount of the check received is usually thousands of dollars more than the agreed upon price. The seller is instructed to deposit the check, and as soon as it clears, wire the excess funds to a third party, typically referred to as the "shipper" and often located in the United States.
All the while, the seller feels that a total stranger has entrusted him and has a desire to carry out the transaction in a timely manner. Because a cashier's check is used, a bank will typically release the funds immediately as a customer courtesy. Falsely believing the check has cleared, the seller wires the money as instructed. Western Union is often recommended by the agent and used by the seller to send the overage. In some cases, the buyer is able to convince the seller that some circumstances have arose that necessitate the cancellation of the sale and is successful in persuading the victim to wire the remainder of the money. Later, the bank notifies the victim that the check was fraudulent, and the bank holds the victim responsible for the full amount of the check - plus any processing fees!