FTC issues Defensive Tactics to Avoid Check Overpayment Scam
It is always said prevention is better than cure. In this hard Global economic times , where people want to keep their money safe , and avoid falling to any victim or any scam , it seems even though scam artists are smart to take the every advantage of every season whether it is tax, or investment buying or selling fraudsters are always waiting for you with new tactics to take away your money .
But according to FTC (Federal Trade Commission) nation’s consumer protection agency, want people to Defense against Check Overpayment Scam expertly .In fact FTC Want people to know what is Check Overpayment Scam and how to avoid them smoothly.
According to FTC officials people should beware of selling or buying through internet ,through online auction or through newspaper classified section .
Here the scam artists (which is buyer or agent )responds to your posting or ad and promptly takes you in to confidence to use cashier’s check, personal check or corporate check to pay for the item you’re selling. But in this whole dealing process ,at last moment the o-called buyer (or the buyer’s “agent”) comes up with a reason for writing the check for more than the purchase price, and asks you to wire back the difference after you deposit the check.
The buyer directs you to wire back the difference after you deposit the check . But real sense you are trapped and in return you deposit the check and wire the funds back to the “buyers.” Later, the check bounces, leaving you liable for the entire amount. In true sense Check are fake says FTC ,but good enough to hijack the bank information of innocents.
Where as in second Example Consumer recieve a check that from winning a lottery . Scam artist ask to pay taxes or fees for further processing Usually they are operated from far country , and could not be traced out .
How to Avoid Check overpayment scam
-Know who you’re dealing with. In any transaction, independently confirm the buyer’s name, street address, and telephone number.
-Don’t accept a check for more than your selling price, no matter how tempting. Ask the buyer to write the check for the correct amount. If the buyer refuses to send the correct amount, return the check. Don’t send the merchandise.
-Consider an alternative method of payment. As a seller, you can suggest an escrow service or online payment service. There may be a charge for an escrow service.
-If the buyer insists on using a particular escrow or online payment service you’ve never heard of, check it out. Visit its website, and read its terms of agreement and privacy policy. Call the customer service line. If there isn’t one or if you call and can’t get answers about the service’s reliability, don’t use the service. To learn more about escrow services and online payment systems, visit www.ftc.gov/onlineshopping.
-If you accept payment by check, ask for a check drawn on a local bank, or a bank with a local branch.
If the buyer insists that you wire back funds, end the transaction immediately.
Resist any pressure to “act now.”
Throw away any offer that asks you to pay for a prize or a gift. If it’s free or a gift, you shouldn’t have to pay for it. Free is free.
Resist the urge to enter foreign lotteries. Most foreign lottery solicitations are phony. What’s more, it’s illegal to play a foreign lottery through the mail or the telephone.
source: www.ftc.gov
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