May 7, 2003

East Lansing - The Michigan State Police are warning citizens about a new computer scam that is being reported in Michigan. This scam is a version of Nigerian Advance Fee Fraud that involves the purchase of vehicles and boats online.

Nigerian Advance Fee Fraud uses an intermediary to facilitate a transaction with a victim in which the intermediary receives a profit at the victim’s expense. Using the excuse that they need to transfer their money to an overseas bank account, past scams have involved perpetrators posing as Nigerian government officials or heirs to overseas fortunes. With the promise of fast cash for the victim, the perpetrator sends the victim a check with instructions to cash it and send a portion of the money back to them. Unfortunately, the counterfeit check never clears the bank, and the victim loses the money they sent to the perpetrator.

The newest version of this scam uses the same principles, except the target victims are persons who place online classified advertisements for vehicles and boats. In this scam, a person claiming to be interested in purchasing the vehicle or boat contacts the seller (victim). They don’t ask any questions about the item and offer the seller full asking price. The perpetrator then sends a cashier’s check for the item.

When the seller receives the check, the amount is several thousand dollars more than the selling price. The seller contacts the buyer to inquire about the additional amount and the buyer informs them that they made a mistake in the amount. The buyer then requests that the seller return the difference to them. Days later, it is discovered that the cashier’s check is counterfeit and the seller has lost several thousand dollars.

In another variation of this scam, the buyer informs the seller that he/she is the agent for the actual buyer, and that the difference in amount is his/her profit from the sale. Again, the perpetrator requests that the seller send them the difference.

The best defense against Nigerian Advance Fee Fraud is to know whom you are dealing with when you make an online transaction. The Michigan State Police recommend waiting until the payment check clears the bank before issuing any sort of refund. They also remind citizens that if something sounds too good to be true, it most likely is.