Beware of online classified ad scams

Hey there, time traveller!
This article was published 27/03/2017 (3204 days ago), so information in it may no longer be current.

Online classifieds have become very popular for people wanting to sell items or wanting a “good deal.”

Every year hundreds of people are scammed in Manitoba. Two of the most common types of scams are the “prepayment” scam and the “overpayment” scam.

In the prepayment scam, people advertise items that get people excited — a rare breed of puppies, a vintage car, or any item at a very low price.   

Victims are asked to send money as a deposit or to “hold” the item. Money is sent and communication ends.

Guess what? The seller never had the item and your money is gone.

Before arranging any payment, you must determine if the ad is legitimate. After all, how hard is it to post an ad with some pictures?

The overpayment scam involves people responding to an ad you have posted with an offer to pay the full asking price plus shipping to their location.

Then they send you a cheque for more than the amount agreed.

The buyer then asks that you send them the overpayment, usually several hundred dollars. Always be suspicious if someone you don’t know asks you to return money they “accidentally” sent you. The cheque they have sent you is likely stolen or counterfeit and will not clear, leaving you out the money you “returned.”

Here are some other tips:

• Never use a money transfer service to send money to someone you have not met in person. Once money is sent, it is gone and there is no way to trace it.

• Never transfer funds that you receive by cheque until the funds have officially cleared your account. This can take several days or more. If a cheque is counterfeit, as they usually are with this scam, it can take weeks before it is returned as counterfeit.  When a cheque is returned as counterfeit, your financial institution automatically removes the funds from your account.

• Be cautious about e-transfers. An e-transfer is a process whereby funds can be sent to an email address or mobile phone number and the transaction is processed by your financial institution. The recipient is notified by email or text and funds can be received into a bank account.  Although these transactions can be traced, you are very unlikely to ever recover your money.

A helpful resource is the Canadian Anti-Fraud Centre. It has up-to-date information about new trends in frauds.

Important Fraud Prevention Month dates

• A free shredding day will be held at St. Vital Centre on March 31 between 11 a.m. to 1 p.m.  Find us at the Shred-It truck (maximum of two bags or boxes per person).  

March is Fraud Prevention Month, so the Winnipeg Police Service  and Canstar Community News are publishing a series of articles to alert the public to a variety of scams used by fraudsters.