Putting an unwanted item up on Internet selling sites like Craigslist is a great way to pick up some extra cash, however, there are weird pitfalls to avoid while you do it. Take Debbie (not her real name) who nearly fell into one when she decided to sell old costume jewelry online. When someone emailed that she wanted to buy one of her necklaces Debbie thought she'd struck lucky first time out and offered to meet.
Craigslist Advises Selling Close to Home
Craigslist advises selling close to home and meeting potential buyers face to face (Craigslist.org/about/scams). The potential buyer wrote that she was on holiday and would pay through PayPal. Debbie even got a confirmation number and note from PayPal. So far so good. Then came the address where the package was to be sent; Lagos, Nigeria.
Representatives of both UPS and FedEx urged caution, saying they could not guarantee safe delivery of the item. The "buyer" insisted that the money had gone from her PayPal account and that she would guarantee delivery. Debbie was still not convinced and 'phoned PayPal. They told her that the so-called buyer had no account and that the note that seemed to be from them was a forgery. She was to forward the correspondence to them.
Phony Cashier Checks and Money Orders
Other scams include emails and websites asking for money to get a job and phony cashier checks and money orders. Usually, the story is that you provide goods and services and send cash in exchange. Then there is phishing wherein banking or PayPal passwords are obtained through trickery. The scammers send an email supposedly from such a company and capture login information. It's all very convoluted.
SEC Cautions Against Email Scams
It is not just small sellers who are at risk on the web; investors are at risk too. The Securities and Exchange Commission (SEC) (sec.gov) cautions against email scams, online investment newsletters and bulletin boards. They urge consumers to " Never, ever make an investment based solely on what you read in an online newsletter or bulletin board posting." Investigate whoever is running the company, analyze its financial statements, verify new product development or lucrative contract claims and call its every supplier or customer. Above all, check to see whether it has ever made any money for investors.
Boon to Scam Artists
The Internet is a great tool for buying and selling, too bad it's also a boon to scam artists. Of course, it can work, but consumers need to be suspicious and take notice of all the advice on offer. Good luck.
