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  • Geebo 9:00 am on February 27, 2024 Permalink | Reply
    Tags: , , , overpayment scam, , , tree cutters   

    Homeowner almost loses trees to business scam 

    By Greg Collier

    Scams come in various shapes and sizes. Take the widespread jury duty scam, for instance. Scammers reach out to numerous individuals, aiming to persuade as many as possible into parting with their money. On the other hand, scams can also be highly specific, honing in on niche industries that most people wouldn’t consider as typical scam targets.

    In a recent incident in Nashville, a homeowner found themselves warding off multiple tree-cutting companies attempting to remove perfectly healthy and mature trees from their property. While it might initially seem like the mischief of local pranksters or a vexed neighbor, the homeowner wasn’t actually the main focus of the scam.

    It’s suspected that the tree-cutters were ensnared in the overpayment scam, often known as the fake check scam. In this ploy, a check surpassing the agreed-upon amount is furnished for a transaction, with scammers urging the return of the excess before the victim or their bank detects the check’s falsity. This tactic leaves the victim liable for the entire amount to their bank.

    The homeowner’s property was targeted in the scam due to its status as a listed property for sale. Scammers often exploit homes in this situation, assuming they are unoccupied during the sales process.

    Business owners can take proactive measures to safeguard themselves against the overpayment or fake check scam.

    Before proceeding with any transaction, especially involving a check for an amount exceeding the agreed-upon price, confirm the customer’s identity and purpose of the transaction.

    Whenever possible, encourage or require the use of secure and traceable payment methods such as electronic funds transfer, credit cards, or certified checks. These methods offer more security compared to personal or business checks.

    If you receive a check, especially if it’s unusually large or if there’s pressure to return a portion of the payment, independently verify its authenticity. Contact the issuing bank directly to confirm the validity of the check.

    Don’t release goods or provide services until the check has fully cleared. Depositing a check doesn’t guarantee its clearance, and it may take time for banks to confirm its legitimacy.

    By implementing these precautions, business owners can reduce the risk of falling victim to the overpayment or fake check scam.

     

  • Geebo 9:00 am on January 31, 2024 Permalink | Reply
    Tags: , , , overpayment scam,   

    Contractors tricked by scammers into redoing homeowner’s driveway 

    Contractors tricked by scammers into tearing up homeowner's driveway

    By Greg Collier

    If you heard that a homeowner had their driveway worked on by contractors when they didn’t order any such work, you might assume the homeowner was the victim of a scam. Well, they were definitely a victim of a scam, but they were not the intended target.

    The homeowner from Denver had just listed their home for sale online. Typically, that can invite a number of scams in itself, such as scammers claiming they’re renting the home while the owner is trying to sell it. However, this time, something wholly unexpected happened.

    While monitoring their security camera at work, the homeowner observed contractors in their driveway. Concerned, they asked a neighbor to investigate. The contractors claimed they were there for a job ordered by someone named Gary, who allegedly bought the house and wanted the driveway redone. Fortunately, the homeowner’s intervention, with the help of the neighbor, prevented any damage as the contractors were convinced the job was not authorized and left.

    It is suspected that the contractors were targeted in the overpayment scam, commonly referred to as the fake check scam. In this scheme, a check exceeding the agreed-upon amount is provided for a purchase, and scammers request the overpayment to be returned before the victim or their bank discovers the check is fraudulent. This leaves the victim responsible for the full amount to their bank. In this instance, scammers are targeting homes that have been listed for sale that aren’t occupied.

    Business owners can take several steps to protect themselves from the overpayment or fake check scam. Before proceeding with any transaction, especially if it involves a check for an amount exceeding the agreed-upon price, verify the legitimacy of the buyer or client. Confirm their identity and the purpose of the transaction.

    Whenever possible, encourage or insist on using secure and traceable payment methods such as electronic funds transfer, credit cards, or certified checks. These methods offer more security than personal or business checks. Independently verify the authenticity of any checks received, especially if they seem unusually large or if there’s pressure to return a portion of the payment. Contact the issuing bank directly to confirm the validity of the check.

    Before releasing goods or providing services, wait for the check to fully clear. Just because a check is deposited doesn’t mean it has cleared, and it can take some time for banks to confirm its legitimacy.

    If something seems too good to be true or if a transaction feels suspicious, trust your instincts. It’s better to conduct additional checks or refuse a transaction than to fall victim to a scam.

    By implementing these precautionary measures and staying vigilant, business owners can reduce the risk of falling prey to scams like the overpayment or fake check scam.

     

  • Geebo 9:00 am on January 24, 2023 Permalink | Reply
    Tags: , , overpayment scam, ,   

    The fake check scam goes digital 

    By Greg Collier

    In recent years, digital banking has become increasingly popular, and for good reason. Gone are the days of waiting in long lines at the bank or struggling to find time to visit a physical branch. With the rise of digital banking, managing your finances has never been easier. From opening accounts and applying for loans to paying bills and monitoring your transactions, digital banking allows you to take control of your money from the comfort of your own home.

    However, that convenience comes with some security risks. We’ve often discussed the fake check scam, where victims get sent a fraudulent check and are asked to return a portion of it. It used to be most prevalent with online selling, but now we tend to see it more with job scams. In both instances of the scam, physical checks are typically sent to the victims for them to deposit into their bank accounts before sending a portion of the money elsewhere. Once the bank determines the check is fraudulent, the victim becomes responsible for paying the bank back the amount of the check and then some.

    Now, there is a fake check scam where the scammers aren’t even sending physical checks. According to police from a Cleveland suburb, Scammers are approaching victims on social media and asking their victims if they can buy the pictures they’ve posted on social media. The victim is then emailed a picture of a check, which they are told they can deposit by scanning it with their bank’s app. However, like in most check scams, the check is more than the amount the scammer promised. The victim is told to send the difference back through Zelle or Venmo once the check has cleared the victim’s account. The scammers then make off with the money from the victim, while the victim gets charged by their bank.

    If you ever receive a check, whether physical or digital, if it’s for more than the amount you were promised, do not deposit it. It’s almost guaranteed to be a fake. No legitimate professional or business would ask you to pay them the difference through Zelle or Venmo. These apps are meant to be used between friends and families and not random strangers promising you money.

    Banks and financial institutions have implemented several measures to protect their customers from these risks, but users also have a responsibility to protect their account and personal information. By staying informed and taking the necessary precautions, you can enjoy the benefits of digital banking while keeping your finances safe and secure.

     

  • Geebo 9:00 am on November 9, 2022 Permalink | Reply
    Tags: , , , overpayment scam, ,   

    Coffee table on Craigslist leads to con artist 

    Coffee table on Craigslist leads to con artist

    By Greg Collier

    One of the oldest scams when it comes to selling items online is the overpayment scam. Traditionally, a victim would advertise an item for sale on a platform like Craigslist. They would be approached by a prospective buyer who wanted to pay by check. When the seller received the check, it would be more than the amount they asked for. The buyer would say they made a mistake and would ask the seller to deposit the check and return the overage.

    This is also a version of the fake check scam. The check is always fake, and after the seller deposits it and sends money back to the buyer, the bank finds out the check is fraudulent. This leaves the seller on the hook to their bank for the full amount of the phony check.

    Since those times, many online sellers caught on to the fake check scam. That didn’t mean that the overpayment scam went away. It’s still around, but now has a more digital aspect to it.

    For example, a woman in Pennsylvania listed a coffee table for sale on Craigslist. The table was listed for $300. A man who claimed he wanted to buy the table sent a cashier’s check for $1550. She was told to deposit the check and keep $300 for herself and give the remaining $1250 to the movers when they come to pick it up.

    Just as an aside, there’s a similar scam where the ‘movers’ are in on the scam and just take the money. However, today’s scam does something different.

    After a few days, the buyer said that the movers couldn’t make it, and he changed his mind about buying the table. The buyer then asked for $1450 back from the seller, and wanted it sent to him through Zelle, which the seller did. The same day the seller sent the buyer the money, the seller’s bank discovered the check was a fake.

    For once, police were able to track down and arrest the scammer, although that’s the exception and not the rule. There was no report whether the seller got her money back or not. Since she used Zelle, there’s a good chance she didn’t, even with the scammer being arrested.

    If you sell items online, some of the old rules are still true. The first one is not to accept checks. Or, at least tell the buyer that there will be a delay in shipping until the check is verified as genuine. If you receive payment for more than the amount you’re asking for, it’s a scam. The buyer didn’t make a mistake, and there are no movers.

    While it may be convenient to accept payments through platforms like Zelle, Venmo and Cash App, they can also be manipulated.

    Your best bet is to only sell locally and only take cash.

    Lastly, we always recommend meeting the other person at a local police department. Many police departments now have areas designed for such exchanges. While it won’t guarantee you won’t be scammed, it goes a long way as a deterrent to scammers.

     

  • Geebo 9:00 am on March 8, 2022 Permalink | Reply
    Tags: , , , music student, musician, overpayment scam,   

    Even musicians fall victim to the fake check scam 

    By Greg Collier

    More so than most people, musicians have a keen eye for scammers when it comes to getting paid. If you’ve ever known a professional or semi-professional musician, you’ve probably heard stories about how they’ve been ripped off by promoters and venue owners, just to name a few. Musicians are often either not paid the amount they were promised, or they have to constantly follow up with whoever owes them money. This is where the term ‘starving musician’ typically comes from. Now, they have yet another payment scam to worry about, and it’s one of the most common scams around today.

    The United States Postal Inspection Service is issuing a warning about the fake check scam, or the overpayment scam, as it’s also known. They’ve highlighted the story of a music student who’s also a gig musician from a university in Indiana. The pianist received an email from her professor that said someone had requested the pianist to play their wedding.

    The pianist contacted the woman who had requested her services, and they agreed on a $200 fee. The pianist received a check for $1900. When the pianist brought this to the attention of the supposed bride, the bride made the excuse of she had accidentally combined the payment of the florist along with that of the pianist. The pianist was then told to deposit the check and send the overage back to the bride at a PayPal address. A few days later, the pianist’s bank discovered the check was fraudulent, and now the musician was out $1700.

    As always, if someone sends you a check for more than the amount you’re asking for, the odds are they’re attempting to scam you. If you deposit the check and then return the overage, you will be held responsible by your bank for the full amount of the check and any associated penalties. However, this story is a great example of how scammers will set out to steal money from just about anyone.

     

  • Geebo 9:00 am on February 18, 2022 Permalink | Reply
    Tags: , , , , overpayment scam,   

    The oldest scam still plaguing online sellers 

    The oldest scam still plaguing online sellers

    By Greg Collier

    It’s almost hard to believe that online marketplaces have been around for over 20 years. Geebo.com itself has been around since 1999. However, in the past two decades, there’s been a scam targeting online sellers that just won’t seem to go away. I’m referring to the fake check scam, which is also known as the overpayment scam.

    This is when an online seller is paid more than the amount they’re asking for, usually by a check. The supposed buyer will typically give some excuse as to why they overpaid. This can be anything from they accidentally wrote the amount on the check to paying for special shipping. In all cases, the buyer will ask for the difference back from the seller. After the seller deposits the check in their bank account and sends the difference back to the buyer, the seller’s bank discovers the buyer’s check is either fraudulent or stolen. The seller is then held responsible by their bank for the full amount of the check, plus any associated penalty fees. Meanwhile, the buyer makes off with whatever money the seller sent them.

    This recently happened to a man in the Phoenix area. He was selling an old couch on marketplace app OfferUp. He was only selling the couch for $300 but received a check for close to $1700. The man was instructed to keep $300 for the couch but send the remainder to a moving company for shipping. The man deposited the check through his banking app and sent the difference to the mover’s through online payment app Zelle. The movers turned out to just be another part of the scam. This all took place before the man’s bank discovered the check was counterfeit.

    Longtime online sellers are well aware of this scam, but new sellers are entering the market every day. The scammers are depending on the new people who aren’t sure what to look for when it comes to scams. They don’t need to fool every online seller, just a few to make the scam highly profitable.

    If you’re selling something online, and you receive a payment more than the asking amount, do not allow that payment to go into your bank account. Both checks and electronic transfers can turn out to be fraudulent. If the payment does make it into your bank account for some reason, instruct the buyer to reverse the payment. Whatever you do, make sure the money isn’t spent from your account. If you use a payment app like Cash App or Venmo, again, instruct the buyer to reverse the payment. Do not just return the payment.

     

  • Geebo 8:00 am on September 8, 2021 Permalink | Reply
    Tags: accidental deposit, , , deposit scam, overpayment scam, , , ,   

    There’s nothing accidental about these payments 

    There's nothing accidental about these payments

    By Greg Collier

    Last week, we posted about a scam that was affecting Venmo users. In that scam, scammers were posing as friends of the Venmo account holder and asking for money. But what do you do if a stranger sends you money that you didn’t ask for and does it through a payment app? The Better Business Bureau has issued a warning about an accidental payment scam that’s been affecting users of payment apps like Zelle, Venmo, Cash App and others.

    In what’s being called the accidental payment or accidental deposit scam, the victim receives a substantial payment from someone they don’t know. That payment is then followed up by a message from the person who sent the money, saying they sent that payment accidentally, and could you please send it back? Whatever you do at this point, do not send the money back like you would a regular payment.

    According to the BBB, the money that was sent to you was done using a stolen credit card. If you send the money back like a regular payment, you’ll be responsible for that money once it’s discovered the credit card is stolen.

    Instead, you should tell the sender to cancel the payment, which can be done on most of the popular payment apps. If they refuse or try to pressure you into sending it back, it’s more than likely a scam. Also, don’t spend the money that you receive from the scammer, or you’ll be held liable for that money.

    While many of the scammers are finding their victims randomly, others are finding them through social media. In order to prevent receiving phony payments like this, it’s best to keep your account names off of social media. While you may think it’s just a quick post between friends, it can be picked up quickly by scam artists.

     

  • Geebo 8:00 am on April 9, 2021 Permalink | Reply
    Tags: , overpayment scam, photographers, ,   

    How a Texas photography scam affects you 

    By Greg Collier

    It seems that scam artists are targeting wedding photographers in North Texas with a familiar ploy. The scammers are posing as wedding parties who are booking the photographer for a session. The scammers then send a check that’s more than the amount the photographer is asking. The scammers tell the photographer that the check was in the wrong amount and that the photographer should just deposit the check and send back the difference.

    Long-time readers may recognize this as the fake check or overpayment scam. If any photographers have deposited these checks, they may find their bank accounts a lot lighter. Banks usually don’t receive notice that the checks are fake for a couple of days. By that time the scammers have their money and the victim is stuck with paying off the phony check to their bank plus any fees incurred. At least one photographer asked her bank to research the check before she deposited it, and the check turned out to be fraudulent.

    You’re probably saying to yourself that you’re not a photographer from Texas, so why should you have to worry about this scam? The answer to that is this scam just doesn’t target one industry or one location. If you’re an employee, a business owner, or freelancer you could be targeted in this scam. If your position or business requires you to accept payments, you could be targeted in this scam. That’s not even considering that this scam has a long history of targeting individual consumers who sell items online.

    If you ever receive a check that’s over the amount you’re expecting, either destroy the check or send it back. If a business or business owner were to deposit one of these checks you could see your checks to vendors start bouncing. That could end with your business having a negative reputation with your vendors that could take a while to rebuild.

     

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