Certified Check Scam
In the real estate industry, as in many, it seems that scammers are always coming up with a new way to attempt to gain from deception. I have recently been made aware of a series of scam operations, involving transactions that start out as a purchase involving a foreign national as the purchaser. Many of these potential purchasers will carry the title “Doctor” or “Prince.” Of course, this purchaser has no intention of coming to the closing, and additionally makes contact with the listing agent by telephone, who will write up the transaction. If this transaction makes it to closing, the purchaser’s funds are presented in amounts substantially larger than required, and are followed by a request for immediate closing and immediate refund of the overage by wire transfer. Often the wire transfer is requested to an account in an overseas bank.
The purchaser’s “funding” is by an “official” check from a recognizable U.S. financial institution or a Canadian “institution” with a plausible name. The reported cases indicate these documents are either counterfeit or have been stolen from the alleged institution of origin, and obviously, uncollectible. The document is typically delivered by courier, on a Friday afternoon, with the demand for immediate refund by wire.
The moral of the story is “if it looks too good to be true, it probably is.” Be aware of who you are dealing with, and that this is just one of many scams currently out there. Trust your instincts, and don’t deviate from your policies, even if your buyer is a “Doctor” or a “Prince.” What will they think of next?
