The following information will provide you with possible fraud situations and methods for protecting yourself when selling equipment. There are several variations of these circumstances, so please be vigilant at all times. By continually clicking back with us, freeEmbroiderystuff.com will keep you up-to-date with new methods of protection.
Money Order Scams
Scenario: Seller receives a message from buyer asking if seller will urgently ship out equipment, if buyer sends a money order with the extra costs of the express shipment. The seller agrees, while the money order quickly arrives. After receipt of the money order is received seller immediately ships out the equipment. The money order is later found to be fraudulent, leaving the seller without the expensive equipment and the money.
Protection: By only accepting USPS money orders you can be assured of their authenticity because they are more difficult to counterfeit. When you do decide to accept NON-USPS money orders, contact the issuing bank for confirmation of legitimacy of the document. Finally, never ship equipment prior to cashing the money order and having the cash in your hands!
Company Check Scams
Scenario: Buyer informs seller that he would like to pay for purchase with a recently issued company check. The company check's dollar amount is much greater than the equipment amount, but the buyer trusts that the seller will refund the difference after the check clears. The check appears to clear seller's bank, and seller ships equipment along with money order. Therefore seller loses the equipment, money order, and the full amount of the check.
Protection: Do not accept third-party checks under any circumstances. However, if you do accept checks as a form of payment, and the dollar amount exceeds equipment price, wait for the check to be paid rather than cleared. Sellers should consult their bank representatives for terms of paid and cleared check.