Fraud Case Study 9-Cashier's check fraud

Case Description:

 "I dealt with a new buyer and he placed an order very quickly. Soon after, I received a USD$6,000 cashier's cheque from him; however, the amount of this check was in excess of the purchase price. I was requested to wire the balance back to him. I deposited his cheque and then sent out the products. I also wired back the balance as requested. Then, I was informed by my bank that the buyer’s cheque was fraudulent. I lost both my money and merchandise to a scam".

Analysis of this case:


If you're faced with a situation that looks anything like this, you're probably experiencing a cashier's cheque fraud. The fraudster will pretend to be a buyer and pay you a cashier’s cheque which is in excess of the purchase price. The cheque will be from them or a third party. However, don't ever send money until you find that the paying bank has actually paid the funds into your account. The trick of the cashier’s cheque fraud is that the payee’s bank credits the seller's account before the funds have actually arrived from the paying bank. Therefore, it looks like the funds have cleared and everything is OK. Here are some tips if you encounter similar situations:

1. It is ALWAYS too good to be true. No buyers will make a rush decision without discussing the details of your product. Ask your potential buyer more questions. 

2. Don't be hurried along by your buyer. This is often a tactic used by fraudsters to get you to make a mistake.

3. Check the details of any payment received. Do they correspond with the information given to you by your buyer? If you are paid by company cheque or banker's draft, then try to contact the company directly to verify its legitimacy.   


4. Confirm details with your bank. Your bank will be able to give you guidance and clarify the status of any payments received.

5. If you do lose money to this type of fraud, then report the matter to your local police and contact the Alibaba service team at alibaba@alibaba-inc.com.