I see, that must be really frustrating!
I haven’t had that much interest but I’m in a vastly different price range, low low 5s.
I left out th 4th step. The “new customer” closes the account, and leaves town, before the bank discovers that the check was fake. So the “new customer” may be legally liable, but there is no way to collect it.
But in the scenarios described above, it is not a “new customer”. It is an old customer, the person being scammed.
Hay seller makes the agreement discussed above with someone who is actually a scammer. Hauler will pick up hay. Scammer sends ‘cashier’s check’ with amount for hay + hauler.
Hay seller takes the cashier’s check to the bank and deposits it, along with their other valid checks for hay sales. As they always do. (Or horse seller, or whatever was sold.)
Hay seller withdraws cash sufficient to pay the ‘hauler’ per their agreement. Because banks customarily allow this up to a certain amount, even though the checks haven’t yet cleared the ACH system.
Later the cashier check problem is found out by the system – whatever the reason, no real funds. Bank does not get any funds from the bum cashier’s check.
Bank withdraws the sum of the cashier’s check from the hay seller’s account where it was deposited. Because the check is no good.
Hay seller is the one party that is ultimately out the funds. Not just the amount of the cashier’s check paid for the hay and the hauler. But also add the amount of cash they withdrew to pay the hauler – that now has to be made good with their own funds.
Sellers can fall for this because the scammer appears to be buying enough to make it a good & desirable sale. The scammer asks for an amount in cash to pay the hauler that is under the bank limit on a withdrawal against a just-deposited check – that’s the amount that they are stealing. (That is, the amount to pay the hauler that was added to the total of the check.) And of course everything is an immediate rush, so it happens before the ACH system catches the bad cashier’s check.
It is a really dirty scam against hard-working people doing honest business with whatever they are selling.
Bank automated systems are making it harder for this scam to work. But there are reports of it still in operation around the country.
Your reply was to MY post. MY post was about the BANK being scammed.
I always put a phone number in my ads. Once an initial message is received, I ask them to call. It’s amazing how long someone can string you along with texts or private messages, then disappear. Having to pick up the phone seems to make a difference in sifting out the serious vs. unserious.
Exactly – the answer is the same.
The bank is not on the hook for the money. The customer is – the ‘old’ custormer – because a new customer won’t be allowed to withdraw money against a check funding a new account, until the check fully clears.
You used a ‘new customer’ that leaves the bank in the lurch. But bank policies and practices will almost alway shield the bank against a new customer bailing out. Banks are very aware of this possibility with every new customer who opens an account
That is why established sellers are targeted. Otherwise why bring them into it at all? The scammers are looking for someone who has established bona fides with their bank, so that the bank will advance the cash against at least part of the value of the check, before the check clears.