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BY JOSEPH PELLICCIOTTI
Times Business Columnist | Saturday, November 29, 2008 | (No comments posted.)
As the economy continues to falter, more and more Americans may be tempted to sell personal items online or through classified ads for extra funds.
These sales can bring in needed money. However, the practice offers risks as well as rewards.
One possible risk is for a consumer to fall victim to a check overpayment scam.
The scam often involves an online or otherwise distant buyer convincing a seller to take a check for a sum in excess of the purchase price for the item sold.
The buyer provides the seller with a convincing-looking check, sometimes in the form of a cashier's check. The seller is given a good reason to wire the excess funds back to the buyer without delay.
In the scam, the check is a fake. The counterfeit check may be of such a good production that it fools the seller and the bank teller at the seller's bank where the check is "cashed." The check ultimately bounces.
The Federal Trade Commission warns consumers to be careful with whom they deal.
Don't accept a check for an excess amount. It can be very tempting, and scam artists are convincing. Resist the temptation as well as pressure to "act now."
Also, be careful when a buyer insists on you wiring back "excess" funds from a sale.
Sellers may wish to consider using an escrow service or online payment service they trust.
For additional information, read "Check Overpayment Scams: Seller Beware" (available at http://www.ftc.gov).
Opinions expressed solely are those of the writer. Joseph Pellicciotti is a lawyer, professor and vice chancellor at Indiana University Northwest.
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