When you sell a car over the car over the internet, how do you know if you're being scammed? Because my brother's got a Cruiser and a buyer from the Uk. But UK guy is offering to send him about $4000 extra for "shipping costs" but I kind of think something's weird about that.
'Heart Of Gold'
Natter 55: It's the 55th Natter
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That sounds pretty scammy, Erika--who buys a used car from another country? And would your brother actually ship it to the UK?
erika, how is payment going to change hands?
That's extremely scammy. That's one of the most common auto buying scams right there.
Okay, thanks. At least we can head this off before he does anything.
I don't get how that works. Once a check "clears" a bank, how can they come after you for the money? Isn't that why, even in this electronic age, some checks take days to clear? Or, are people not really waiting for official clearance?
Often it's a foreign cashier's check. Many people think a cashier's check is as good as cold hard cash. They're not - they can be counterfit. The bank makes the money available as a courtesy, but when the counterfit is discovered the seller is now out the money for the check.
eta: Laga's link explains it in more detail.
I don't get how that works. Once a check "clears" a bank, how can they come after you for the money? Isn't that why, even in this electronic age, some checks take days to clear? Or, are people not really waiting for official clearance?
Counterfeit certified checks can take weeks for banks to pick up the fraud. Meanwhile the scammers push the marks to wire them some of the "excess" funds. The mark figures that a) certified means the check is pre-cleared; b) a few days should be enough time if it still needs to be cleared; and c) if the bank screwed up it's their problem. Wrong on all counts. And once the "excess" funds are wired overseas, they're non-recoverable.
ETA: inevitable x-post
If you read the example listed above, they used a faked cashier's check from a defunct bank -- so that it would take much longer to get cleared/rejected than usual.
I hope erika's brother reads through that whole example, it's eye-opening.