Cheque Overpayment Fraud.

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Nigerians (as all of West Africa)are some of the most intelligent people on Earth. Thats why many find work in several places of the world, Ireland, China, Japan, Brazil, and the USA to mention a few. So its no wonder that many ingenious scams originate from there region.  Nigeria is a relatively expensive place to live. (think of it as making a living in New York City but none of the jobs pay higher than that of a Walmart cashier) So then to avoid being a squatter you will need find alternative income.  

So say...

You sold possibly an electronic item to a buyer from overseas, and a week later you gets an International Money Order valued $100 over the item's price to make sure shipping is covered.  So you immediately ship off the item and either puts the change in the form of a IMO from the post office or cash along as a refund in with the item. Or you either Western Union the change back to them.  A week or so pass the voila, the IMO came back as not cleared. So then you're not only out of a good electronic item, but $100 as well as eBay fees and bank charge back fees, and ofcourse your time!  Nigeria is just one of such places where this happens, and is common in countries with unstable economies. Then you should also be aware of USA buyers where as they can get their hands on blank money orders.   You don't want them singing 'We take 'yo Mo'ney' and smiling all the way to the bank!

 Fraudulent cheques are used in a variety of scams such as advance fee letter fraud, overpayment and prize pitch to name a few.

Overpayment scams is the type of fraud where the person receiving the check is actually owed money for goods sold.   The seller receives a counterfeit cashier's cheque personal check or corporate cheque from the “purchaser” in an amount in excess of the amount owed; is asked to deposit the check and wire the excess funds immediately back to the sender/purchaser or the purchaser's agent or shipper; and, the deposited cashier's check is subsequently returned as counterfeit and charged back to the seller's account.

Anyone selling goods should be suspicious of any cheque, especially if it is for more than the agreed selling price. Consider an alternative method of payment, such as an escrow service or online payment service.   Talk to your bank about the safest way to receive funds from overseas.

To protect yourself against this sort of scam, never agree to a deal in which the payer wishes to issue an amount for more than the agreed price and expects you to reimburse the balance. The scammers use a variety of excuses to explain the overpayment, but any such excuse should be treated with the utmost suspicion.  

In order to avoid overpayment scams, remember the following general words of advice:

• 1)Know whom you are dealing with – independently confirm your buyer's name, street address, and telephone number;
• 2)Never accept a cheque for more than your selling price;
• 3)Never agree to wire back funds to a buyer – a legitimate buyer will not pressure you to do so, and you have limited recourse if there is a problem with a wire transfer;
• 4)Resist pressure to “act now.” If the buyer's offer is good now, it should be good when the check clears; if you accept payment by check, ask for a cheque drawn on a local bank or a bank with a local branch. You can visit that bank branch to determine if the check is legitimate; If the buyer wants to use a service you have not heard of, be sure to check it out to be sure it is reliable – check its Web site, call its customer service hotline, and read its terms of agreement and privacy policy. If you do not feel comfortable with the service, do not use it.

Really the rule of thumb as a seller one should give a money order all the credability of a personal check, allowing it to clear fully before shipping.