Wired: Nigerian Net Scam, Version 3.0

[Guest guest]

------

 

Nigerian Net Scam, Version 3.0

 

http://www.wired.com/news/culture/0,1284,56829,00.html

 

By Michelle Delio

 

All those beleaguered widows, complaining chief's sons and yowling high-ranking

government officials don't want your assistance in getting a large sum of money

out of Nigeria anymore.

 

Now they want to buy your stuff.

 

Yes, there's a new twist in Nigeria's thriving Internet-based scam operations.

This time, the scammers pose as potential buyers for big-ticket items, like

cars, listed for sale online.

 

The buyer explains that a business associate in the United States will mail the

seller a cashier's check for the amount of the item plus the cost to transport

it overseas. The seller is asked to wire the transportation fees to the buyer

once the check has cleared so the buyer can arrange for shipment.

 

But a week or so after the check clears and the money has been wired, victims

are notified by their banks that the check was counterfeited.

 

The scam has become so widespread that victims formed their own online support

group last month. The group now has close to a hundred members.

 

Scam victims admit they initially were skeptical when the deal was brokered,

but after receiving and depositing a cashier's check that cleared, they assumed

all was well.

 

The scam takes advantage of a little-known loophole in the U.S. banking system.

Many people don't realize that when a bank says funds have cleared, it doesn't

mean the check is good, according to Carol McKay, director of communications

for the National Consumers League.

 

"Under federal law, depending on the type of checks deposited, banks must give

consumers access to the money within one to five days. Longer holds can be

placed on deposits over $5,000, but banks are reluctant to inconvenience their

customers," McKay explained.

 

"Unfortunately, it can take weeks for fake checks to be detected in the banking

system. And consumers are then left holding the bag for the money they've

withdrawn. That's because it's the depositor, not the bank, who is responsible

if a check turns out to be bad."

 

Jeff and Shawn Mosch were victims of the scam, and they figure their bank is

just as much at fault as the con artist who ripped them off for $7,200.

 

Shawn Mosch said she went to the bank with the cashier's check and told the

teller, "I need to know when this is going to be a good, clear check -- when

this is going to be actual money I can spend and it's never going to come back

and bite me in the butt."

 

She was told her butt would be out of harm's way in 24 hours.

 

Mosch said she waited an extra day just to make sure, and then wired the money

to the buyer. Five days later, the bank informed Mosch the check was

counterfeit and her checking account was now $5,000 overdrawn.

 

McKay said the scam isn't limited to Internet sellers. The Consumers League is

starting to hear from people who have also received counterfeit checks in

connection with work-at-home offers.

 

"Banks would serve their customers better by explaining that they can't

immediately tell if the checks are good and that the depositors will be stuck

if they're not," McKay said. "In general, it's probably a good idea to wait

several weeks before drawing on checks from unfamiliar sources.

 

"But the bottom line is this: No legitimate company will offer to pay you by

arranging to send you a check and asking you to wire some of the money back. If

that's the pitch, it's a scam."