Internet Fraud: There's Something New All the Time

Ontario, CAMost by now are sensitive to the Internet scam that arrives in the form of a letter from someone you don't know, poorly written with broken English, asking for your help in retrieving offshore funds and promising a portion of the proceeds. However, some examples of Internet fraud are not quite as obvious.

Consider the plight of Paul Linton, a Canadian who advertised his 1971 Rolls-Royce Shadow on Craigslist for $30,000 or best offer. According to a November 4th story from Sun Media, the seller was "amazed" when he received an email response to his advertisement, including an offer to immediately forward a check for $35,000.

Sure enough, a check for $35,000 arrived via courier a few days later from an address in Ontario, California. Linton was delighted—but also suspicious. Who would send such a check in that amount to a total stranger? For all the buyer knew, Linton could be a scammer without any asset to vend at all. It just didn't add up, and his business instincts smelled a rat.

The appearance of the check itself was the first clue. It arrived with a cover letter, which made no mention at all of the car. It only referred to "the item" offered for sale. The check, allegedly written on a Royal Bank of Canada account and apparently originating at the University of Calgary, carried an indecipherable signature.

The cover letter noted that the extra $5000 was to be immediately wired to the buyer's 'shipper.'

It was then that Linton knew he was being scammed. After emailing the buyer and explaining that no funds would be forthcoming until he was able to establish the authenticity of the check, he simply waited.

He's still waiting. He never heard from the prospective buyer again.

The obvious intent of the internet fraud, in this case, was for the seller to deposit what would have turned out to be a worthless check in his bank account, followed by the immediate transfer by wire of $5000—considered by the prospective buyer as the overage of the check now in the account of the seller to compensate for the purchase of the vehicle.

In all likelihood the check would prove to be worthless and the seller would be out $5000.

Internet fraud and internet scam experts agree that it is unwise to send, or accept checks or money orders to, or from people you don't know. Never divulge financial information. And unless you're dealing through eBay, which offers a degree of protection, buying or selling anything privately through the Internet remains a risk.