Greg's Corner

Your Online Buyer May Be a Scammer

By Greg Collier

Selling something online can feel like an easy way to turn things you no longer need into extra cash. You take a few pictures, write a description, set a price, and wait for someone to make an offer.

But sometimes the buyer isn’t really interested in what you’re selling.

They’re interested in your money.

That is what nearly happened to a Louisville-area woman who was selling a large toolbox and tools online. She had already completed roughly 50 successful transactions, so she was familiar with the process and had no reason to expect trouble.

Then a buyer contacted her from out of town.

The buyer said he was in Columbus, Ohio, wanted the toolbox and tools, and offered to send a certified check. There was just one problem. The check included nearly $2,000 more than the agreed-upon price.

That extra money wasn’t generosity. It was the trap.

The Buyer Had a Plan

According to the woman’s account, the buyer said the additional money was intended to cover shipping. Once the check cleared, movers would supposedly come pick up the merchandise.

It might sound reasonable at first. Someone is buying a large item from another state, so they need to arrange transportation.

But there were warning signs.

The check arrived by USPS Priority Mail Express. It appeared legitimate and even carried branding associated with a financial institution. The amount was $1,935.06 more than the seller’s asking price.

Then the seller started checking the details.

The buyer claimed to be in Ohio, but the check had been mailed from New York. The buyer’s online profile indicated Oregon.

Those inconsistencies were enough to make her stop.

She didn’t deposit the check. She didn’t hand over the toolbox. She didn’t arrange for movers to pick anything up.

Instead, she told the buyer she would only accept cash and would return the check.

The buyer stopped responding.

The Check Can Look Completely Real

This is where these scams become particularly dangerous.

A fake check doesn’t necessarily look fake.

The Federal Trade Commission warns that counterfeit checks can resemble legitimate business checks, cashier’s checks, and other forms of payment. In an overpayment scam, the supposed buyer sends a check for more than the purchase price and then asks the seller to send the difference somewhere else.

The check can even appear to work.

A bank may make funds available in an account relatively quickly. That doesn’t necessarily mean the check has been fully verified.

According to the FTC, banks can discover that a check is fraudulent weeks after it was deposited. When that happens, the bank can take the money back.

If the seller has already sent the supposed excess payment to the scammer, that money may be gone.

The result can be devastating. The victim loses the merchandise and the money sent to the scammer, while potentially being responsible for the amount of the fraudulent check.

In other words, money showing up in your account isn’t the same thing as having legitimate money.

Why Would a Buyer Overpay?

The overpayment is the heart of the scam.

Imagine you’re selling something for $500. A buyer sends you a check for $2,500 and tells you to keep the $500 and send the remaining $2,000 to a mover, shipping company, or some other third party.

You deposit the check.

Your account shows the money.

You send the $2,000.

Then the bank discovers the check is fraudulent.

The $2,500 disappears from your account, but the $2,000 you sent to the scammer isn’t coming back.

The scammer has effectively convinced you to transfer your own money to them.

The FTC specifically advises people selling items online not to accept a check for more than the selling price.

That single rule can eliminate one of the biggest warning signs in this particular type of scam.

The Marketplace Doesn’t Have to Be Facebook

It’s easy to think of this as a Facebook Marketplace problem.

It isn’t.

The same basic scheme can happen through virtually any online marketplace, classifieds site, or peer-to-peer selling platform where strangers can contact one another.

Scammers can move between platforms because their real target isn’t the website.

It’s the person on the other side of the transaction.

They may claim to be located in another city. They may say they’re sending someone else to collect the merchandise. They may even invent a reason for paying more than the asking price.

The story can change.

The objective doesn’t.

Get the seller to trust the payment long enough to send money, merchandise, or both.

Red Flags

One warning sign by itself doesn’t necessarily prove someone is a scammer. But several unusual details appearing at once should make you stop the transaction and verify everything independently.

Be especially cautious when a buyer:

• Offers substantially more than your asking price.
• Sends a check for more than the agreed amount.
• Wants you to send part of the money somewhere else.
• Says a mover, relative, or shipping company will collect the item.
• Claims to be far away but provides inconsistent location information.
• Pressures you to act before you have time to verify the payment.
• Wants to move the conversation away from the marketplace’s messaging system.
• Sends links or requests verification codes.
• Provides a payment method that you cannot independently verify.

The FTC also warns about other online selling scams, including fake payment notifications, bogus refund requests, and attempts to obtain account verification codes.

The details may change, but the basic strategy is often the same: convince you to trust something before you’ve had a chance to verify it.

Safer Ways to Sell Online

There is no way to eliminate every risk from an online sale, but sellers can make scams considerably more difficult.

Keeping transactions local can reduce some of the complications associated with distant buyers, particularly when you’re selling large items that can be inspected and exchanged in person.

For local transactions, sellers can establish the payment method before meeting the buyer and avoid changing the terms at the last minute.

For transactions involving strangers, sellers should be especially cautious about checks and unfamiliar payment arrangements.

The FTC recommends never accepting a check for more than the selling price. It also advises sellers not to send money, gift cards, cryptocurrency, or other payments back to someone based on a check they have received.

And don’t rely solely on information supplied by the buyer.

If something doesn’t make sense, investigate it independently.

What If You Already Deposited the Check?

If you have deposited a suspicious check, don’t assume you’re safe simply because the money appears in your account.

Contact your bank or credit union immediately and explain what happened. Don’t spend the money, and don’t send any portion of it to the buyer or someone the buyer claims is handling shipping or pickup.

If you have already sent money or merchandise, preserve the messages, payment information, shipping records, and other evidence connected to the transaction.

The FTC accepts reports through its fraud-reporting system, and suspicious mail-related activity can also be reported to the U.S. Postal Inspection Service if the mail was involved.

Trust Your Gut

The Louisville seller ultimately avoided losing nearly $2,000 because something didn’t feel right.

She checked the details.

The buyer’s claimed location didn’t match the information surrounding the payment. The profile raised additional questions. The check was for substantially more than the item was worth.

Instead of explaining those discrepancies away, she stopped.

That’s an important lesson for anyone selling through an online marketplace.

You don’t need to prove that someone is a scammer before deciding not to do business with them.

You don’t need to argue with the buyer.

You don’t need to figure out exactly how the scam works.

If the transaction doesn’t make sense, walk away.

A check can look real and still be worthless. A buyer can sound legitimate and still be running a scam. And money appearing in your account doesn’t necessarily mean that money is yours.

When a stranger offers you more money than you asked for, don’t see it as a better deal.

See it as a warning.