Double Dipping Auto Scam

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Double Dipping Auto Scam

The details of the vehicle, including photos and description, are typically lifted from legitimate websites.

An interested buyer, hopeful for a bargain, responds and is told that the vehicle is located overseas. The fraudster then instructs the victim to send a deposit via wire transfer to initiate the shipping process. In a new twist to this scam, the fraudster advises there is an issue with the initial wire transfer and sends the victim a cashier's check.

The victim is instructed to cash the check and resend a second wire to a different account. Unaware that the check is counterfeit, victims followed through as instructed by the fraudster.

This resulted in the victims getting scammed two times and the fraudster accomplishing his "double-dipping" strategy. You should be vigilant when an Internet transaction involves wire transfers and cashier's checks. Most individuals believe that cashier's checks are as good as cash and they clear the day after they are deposited.

However, banks are required to make the funds "available" in the individual's account within 48 hours, which can be days before the cashier's check clears or bounces. Once the bank makes the funds available, the counterfeit check circulates to incorrect Federal Reserve locations. Generally, the average cashier’s check takes up to two weeks to clear, not two days.

The bottom line: fraudsters understand the U.S. banking system process and capitalize on victims' misconceptions of the term "available funds."

Remember - always watch for scams!

Steve