Saskatchewan Federation of Police Officers 79 CHEQUE OVER-PAYMENT FRAUD Overpayment fraud uses fraudulent cheques. The seller is actually owed money for goods sold and receives a counterfeit cashier’s cheque, personal cheque, or corporate cheque from the “purchaser” in an amount in excess of the amount owed. The seller is asked to deposit the cheque and wire the excess funds immediately back to the purchaser or to the purchaser’s agent or shipper. The deposited cashier’s cheque is subsequently returned as counterfeit and charged back to the seller’s account. Therefore, not only is the seller out the full amount of the counterfeit cheque, he is also out the amount he wired back to the sender/purchaser. Example: A con artist offers to buy a home or lease a rental property for a year. He sends a bogus cheque for more than the amount agreed upon and then contacts the seller or landlord—before the cheque clears the bank— claiming an error has been made. The con artist asks for reimbursement of the overpayment and that is where he makes his money. Excerpted from “Home Sellers beware of internet scam” by Anne Kyle, Regina Sun Community News, July 26, 2009, page 38. What You Can Do About Cheque OverPayment Know who you are dealing with– independently confirm your buyer’s name, street address, and telephone number. Be suspicious of any cheque, especially if it is for more than the agreed-to selling price and where the person paying expects you to reimburse the balance. Ask for a cheque drawn on a local bank or a bank with a local branch if you accept payment by cheque. You can visit that bank branch to determine if the cheque is legitimate. Never agree to wire funds back to a buyer. Resist pressure to “act now.” A legitimate buyer will not pressure you to wire funds back and you have limited recourse if there is a problem with a wire transfer. Be sure to verify any service the buyer wants you to use to ensure its reliability; if you do not feel comfortable with the service, do not use it. Consider an alternative method of payment, such as an escrow service or online payment service. Talk to your bank about the safest way to receive funds from overseas. Report cheque overpayment fraud to PhoneBusters. If you are a victim, contact the local police (if applicable) or the local detachment of the RCMP. Fraud Cent$ Toolkit for Seniors Helping Seniors Avoid Fraud
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