Tue, Feb 9, 2010

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Crooks are using postal money orders to defraud people.

WTOP’s Call For Action Director Shirley Rooker has advice on how to avoid getting ripped off.

How does this scam with postal money orders work?

Postal money orders have always been as good as cash. Now fakes are springing up.

If you sell items on the Internet, you may receive a postal money order to pay for the goods.

Before you find out the money order is fake, you’ve deposited it and shipped off the merchandise. It may be weeks before you learn that the postal money order is fake.

And, you may have some very uncomfortable moments when bank and/or law enforcement officials want to know why you are participating in a fraudulent postal money order scheme.

What are some other variations of this scam?

Another scenario works this way: You are contacted by an acquaintance who has moved overseas. The person tells you that he is unable to cash postal money orders in his new country and asks if he can send them to you and have you cash them at your bank. The incentive to participate is a promise that you can keep some of the money for yourself for helping. Of course, you then send the cash to your friend.

This just happened to a WTOP listener. He cashed several postal money orders from a person he had known for years. The bank did not indicate there was a problem with the postal money orders when he cashed them. He wired the money to his friend and then discovered the fraud. Unfortunately, he ended up losing more than $40,000.

The approach may be from a stranger seeking your help. Don’t fall for the promise of easy money because you will be participating in a fraud.

How can you protect yourself?

If you’re selling merchandise on the Internet, let the potential buyer know that you won’t ship the items until the postal money order clears the bank. Let them know that may take several weeks.

If a friend asks you to cash postal money orders, just be sure that you don’t give your money to anyone until you are absolutely sure the postal money orders are legitimate.

 

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