Selling a vehicle over the Internet? Beware of this scam!

If you have decided to sell your vehicle online, beware of a scam in which you could easily lose thousands of dollars and your car. This scam, originating in Nigeria, victimized a few credit union members over the last few months. The basic premise of the scam works as follows:

Someone will contact you via e-mail agreeing to purchase your vehicle. They usually agree to your asking price and tell you they need the vehicle shipped internationally, often Europe. The payment will be in the form of a Cashiers Check, usually sent over-night to either yourself or your financial institution. The Cashiers Check will be for more then the purchase price to “cover shipping charges and other incidentals”. After the check is sent, the purchaser contacts the seller and states that “I sent too much by accident” or “I have a medical emergency” immediately followed by requests to wire the difference back to the purchaser via Western Union.

This is the goal of the scam artist: To get the seller to send back funds BEFORE they learn that the Cashiers Check is no good (a counterfeit item). Just because your financial institution stated the funds are available, it does not mean the check is good. It may take weeks for the check to be returned and then you are legally responsible to cover any deficiency balance resulting from the counterfeit check.

Unfortunately, it is extremely difficult to prosecute this scam because the suspect usually operates in a country that doesn’t have an extradition agreement with the United States. It is still important to report these scams to the appropriate authorities.

How can you prevent yourself from becoming a victim from this scam?

• Don’t provide your account numbers or personal information to anyone over the internet or phone unless you really know whom you are doing business with. Due diligence is a necessity in this day and age.

• Follow the old adage “If it seems too good to be true, it usually is.”

• Verify the value of your vehicle with NADA. Common sense tells you no one would pay $20,000 for a vehicle only worth $7,000. Ask yourself, “why would this person trust me with thousands of dollars in excess of my asking price, only to request I send the money back to the purchaser (or shipper in some occasions)”.

• Contact your local authorities or Coastal Federal Credit Union if you have any concerns about an Internet transaction that you are considering.