Thanks to new scam tactics it is no longer just "buyer beware" but sellers too, need to beware.
How Con Artists Scam Money From Online Sellers
Scam artists usually target sellers with big ticket items (but they can and do also attempt to con sellers on smaller sales, too.)Here's how the scam works:
- The buyer/bidder completes a purchase and then opts to pay by check.
- The buyer or successful bidder then sends a bad check or fake money order to the seller for an amount more than what is actually owed.
- To avoid the penalties of mail fraud, the seller usually sends the check via UPS or FedEx.
- The buyer, realizing their "mistake," asks the seller for a refund of the overpaid amount via a wire transfer on the seller's account.
- The seller, in good faith remits the overpayment.
By the time the seller realizes that they have been scammed, they have lost the item sold (if it was already sent), the money due for the item sold (the payment was bad), and the difference they refunded to the scam artist.
To make matters worse for the seller, their account has now been compromised by the con artists who also will hack the sellers account and take even more money.
How to Protect Yourself Against Con Artists
There are at least three things you can do to help protect yourself against online fraud from con artists:
- Have a clear refund policy for all payments including over payments that specifically states refunds will not be made until the original payment has cleared.
- Never refund money to someone via a wired account.
- And, reserve the right to refuse a transaction or to sell to anyone if you suspect fraud.
If you have been taken by a buyer scam report it immediately to eBay. "Dealing With Buyer Fraud", offers more tips on scam prevention and how to file complaints about buyer fraud on eBay.
