Domain Scam Alert

[hiOsilver]

Note to Mods: perhaps you can post this where it will get maximum exposure, even in multiple threads.

I received an offer of $1500 for a domain that I had for sale. That was my asking price and most of the time I have to negotiate, but some people do offer full price if the domain is reasonable. So, my scam alert was not up very high. This week, I received a cashier's check for $6,950 made out to me on a bank from Jackson, Mississippi. What would you do in this situation?

I can tell you that if I deposit the check, the buyer will be asking me to send him cash, Western Union Payment, or some other non-reversible for the overpayment. It will turn out that it is a counterfeit check that I have received. It will take a few weeks to find that out, usually after my bank tells me that the funds are being reversed out of my account. When a similar deal happened to my college-age daughter in an apartment sublet deal, she lost $1700. In that case, I spoke to the Bank of America security people (and the FBI). My daughter had no recourse.

So, here is what made me suspicious:
1. Overpayment (in other variations of the scam, overpayment is not necessary, as I have heard of people "only" losing their car for sale)
2. Check came in an envelope from Ghana (with no return address, by the way). Many of these deals come from Nigeria, and you surely have received emails offering you an opportunity to make a lot of money from someone in Nigeria.
3. Cashier's Check (we are used to think that these are a very safe form of payment, but they are oh so easy to counterfeit). This check says to hold it up to the light to view a watermark, but there is no watermark.

Because it is a copy of a real check, it probably would have taken a few weeks for my bank to figure that out and tell me. If you go to Craig's List, you can read up on all of the scams that take place from ads on that site (which is where my daughter had her ad).

When I spoke with the FBI, I was told that these scams are going on like crazy with huge losses. So, please inform everyone you know, even non domainers. Please feel free to post this on other forums, as well.

[Rockefeller]

Yes, ive had a similar experience, the best thing to do is throw the check away and report the scam.

[STEPHAN]

Had a similar experience. Found out who the account holder was and he had not issued the check.

[Banned: VioxxLawyers]

Thanks for warning your fellow DNF members. Never happened to me.... yet.

[Raider]

This is another reason to use a escrow service, if the funds are reversed, escrow guarantees the funds. With the increase in Domain values, were going to see more scams like these and more domain hijackings.

[Focus]

Check cashing store?

[DotComGod]

I can tell you I have an 85k domain at escrow.com and all is smooth.

Would stromgly reccomend them, I have had 50 sales go through, never any issues.

-=DCG=-

[Banned: AlienGG]

Originally Posted by DotComGod

I can tell you I have an 85k domain at escrow.com and all is smooth.

Would stromgly reccomend them, I have had 50 sales go through, never any issues.

-=DCG=-

I believe Escrow.com always makes the payor to physically call the card issuer to clear every payment.

On the other hand, the fake cashier check thingy is not new. It's been going on on eBay for a long while.

[GAMEFINEST]

scammers are getting better every month...

[SYSTEMX]

Escrow.com is the way to sell allways!!!

I mean dont you guy's get nervous when you transfer a domain to Sedo or Moniker or any other company offering Escrow services?

I mean, I guess you can trust them but that gut nervous feeling at the pit of your stomach that you get does not go away untill you get your check or wire transfer from them.

I never get that feeling with escrow.com. My 2 cent's.

[Banned: danielg]

this scam happens to me all the time when i am selling cars on the internet...i see the scammers have moved their way over to this industry.

be careful! those checks do look promising but they WILL BOUNCE after a while.

[cee]

Usually, at most banks, it takes 4 days for a check to completely clear (2 for you to see it as "cleared"). Your bank inputs it (when you see it), sends it to the originating bank, originating bank confirms, complete.

So I suppose another approach would be to cash it and wait a week, but do not provide the buyer with the purchased item until AFTER that week. Call the bank to confirm everything came back from the originating bank as well, for peace of mind (since delays do occur within banks... nothing is concrete). Just a thought.

[meganerd]

A similar incident happened to my mother a few months ago. However, this was not related to domaining but a lottery scam who wanted her to Western Union the remainder to them for a chance to win a bigger prize. Luckily, she didn't cash the check.