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Check Kiting Scam

By
Real Estate Agent with West USA Realty

There's a scheme being perpetrated on innocent users of Craigslist and similar websites. It can be a seller of furniture who is victimized, or a property manager (i've seen both attempted).

The scheme is based on the "float" of a personal check. This is the time between when a check is negotiated (deposited), and when it clears the check writer's bank.

Usually it will work something like this:A furniture seller will receive an e-mail for the sofa set he is selling. The interested buyer will be elsewhere, out of state or out of country, and will be looking to move to the city where the sofa set is located. The buyer will say,"I love the set, consider it sold, the check will be sent out tomorrow". All fine and good. The next day, Mr Seller receives another e-mail," Mr Seller, this bank screwed up and issued the check for much more than the sofa set costs. Do me a big favor; when the check gets there, cash it, keep an extra $500 for yourself for your trouble, and forward the rest as quickly as possible to my friend Bill Smith at P.O Box 123, etc., since he has laid out money for me for some of my moving expenses". How can you resist; you cash the check, pay yourself the extra $500, and forward the rest to Bill.There may even be a phone for Bill, where you can leave a message.

Of course, you can guess what happens next; the check bounces, and you are out what you sent to Bill, probably the $500, which you spent on a quick trip to Vegas, and the sofa set is still sitting there! This happens the same way with rent deposits, down payments on lease purchases, and so on. And forget about getting Bill on the line.

What I have noticed:

1-the scammer is always in a hurry.

2-he really does not respond to points you make in your e-mail to him, but seems to be working solely from his own script. Foe example, you write that there are no 5 bedrooms in Scottsdale, AZ for $1000/month ;the cheapest is $1200, and is located near(some intersection). Having no other info, no address, no pictures, no details, he writes back,"that 5 bedroom for $1000/mo at(above intersection) sound great; what is the down-payment? We really want to pay it off quickly"( this is an actual lease purchase I am corresponding with the "buyer" on right now.

3-the buyer will seem distracted, wanting to get this check to you , secure the deal, and continue with preparing for his move to your town.

4-usually the English is not very good.

 

Never advancve funds; always wait until the check has cleared. Even though your bank gives you access to those funds, that is based on your good record with them, not the bank being in receipt of good funds.When the check bounces, you will be out a lot of money, and your good name with the bank will be shot.