Most families feel secure and in control of their spending if they regularly practice family budgeting and track their spending. But, what happens if you fall for a scam and find that you have been ripped off or are being targeted to carry out a scam.

As an example, in the previous two posts I have mentioned having a used bicycle business with bikes in a rented storage unit and advertising the bikes on Craigslist. In one month I have had four scams that could have had a real negative impact on my budget.

Advertising on Craigslist- The first thing Craigslist advertisers need to do is vet interested buyers before you invite them to your home or storage area. If you are buying an item always take two people with you and do not give any indication that you are bringing a large amount of cash with you to buy the item or items. In Canada on their version of Craigslist a person recently called about a listed pickup that they were interested in. They expressed that they were very interested in purchasing the truck. The seller told them to bring cash, they would not accept a check even a cashiers check. The buyers went to buy the truck and had the cash with him. The seller was standing outside the truck when the buyer spotted him in a parking lot at a shopping center. The seller shook hands with the potential buyer and ask if he brought cash? The potential buyer did not say anything but was reaching in his pocket as the seller shot and killed him. The seller then searched the buyers coat pockets and found the cash took it and left. There were witnesses near by but they did not get the license number and the killer has not been identified or caught.

My Personal Scam Experiences This Month I sold two bikes to honest buyers the first week of the month and was encouraged about the potential for the month. I had seven bikes in my rented storage shed. Craigslist will only let you add an ad for a similar item every 48 hours, so it took about ten days to get all of my bikes on Craigslist. When I put an ad for a higher end Schwinn Midtown men’s bike on Craigslist within minutes I had a text message and two calls on the bike. The text message came first, a woman said here is my husband’s email address, send info on the Schwinn to him that is his favorite model of Schwinn, I am sure he will buy it. I emailed the husband. I got a reply immediately that said, “I am a very busy man and cannot pick up the bike myself. My agent will pick up the bike and ship it to Hawaii where I am moving. I am sending $30 extra over the $160 in the form of a cashiers check, since you are nice enough to hold it for me. As soon as you get the check , text me , and my agent will pick up the bike and ship it. Also be sure to take the bike off of Craigslist immediately so someone else will not buy it. He also said tell me why I should trust you to handle this transaction. We texted back and forth until I finally agreed to that arrangement. I had to send the buyer my name and address so he could get the cashier’s check and mail it. The check came in about four days priority mail that had tracking. The buyer texted me and said the check is in your mailbox. I picked up the check , it was for $1,500. I immediately texted the buyer and said what is your name and address so I can return this check , I will only accept a check for $160 the price of the bike. The buyer said the difference is for my agent, I have some things I owe him for and things I want him to buy and ship. I texted I am not your banker. The buyer texted, “Cash It”! I explained I do not have a bank account here , my account is in another state. I showed the check to a banker, it said “Cashiers’s Check” on Plaza Bank In Irvine CA. There was also the name of an LLC CPA firm in the upper left of the check. It had not been run through a check protector. I texted the buyer , the bank said this is not a legitimate cashier’s check. Again I ask for the buyer’s name and address. He continued to insist that I cash the check. I responded if you do not give me your name and address so I can return the check , I am reporting it to the FBI. He did not give me his name and address. I still have the check and have reported it to the FBI.

Scam #2 Different Buyer-two days later- This time minutes after I put a TREK 4300 bike on Craigslist, I get a text message that says I want to buy your bike but I am very busy and cannot come to pick up the bike but my agent will pick it up after the check arrives. The first scam was still in progress, so I was not fully aware that it was a scam at that point. This person wanted my name and address to send a check for the bike. He did not offer to send any more than the $175 for the bike. He said after the check arrives, text me and I will have my agent pick up the bike. He ask that I remove the bike from Craigslist so no one else could buy it. A check for $1,000 arrived Fed Ex two days later , it was not a cashiers check and had paperwork with it that ask that I call a check cashing service to give them information and they would give me permission to cash the check. This check had a corporation’s name and was on the USAmeribank in Florida. In a text message he also ask that I give the $825 to his agent. By that time I had figured out the $1,500 check was a scam. I texted the second buyer that it is obvious that this is a scam and ask what his name and address was so I could return the check. He also refused to give that information. I texted him that I was turning the check over to the FBI for investigation.

Three weeks later I Advertise the new Schwinn Bike again’ Within in minutes of listing it late at night I get a text message stating they wanted to buy my bike but were very busy so would have an agent pick up the bike after I received their cashier’s check. They also said they would pay me $50 extra for holding it for them. I texted back that this scam had been tried twice already this month and I was reporting their text transmission to the FBI. I did not receive any other communication from them.

What Impact Could These Scams Have On My Budget? A friend of mine that lives in New Brunswick related a story of a similar scam last night that occurred in his town. A family wanted to sell some furniture for about $3,000 U.S. currency and had it listed on their service comparable to Craigslist. They got text messages saying that the person wanted to buy the furniture for the $3,000, but would add $500 since they were not there. They ask that after the check arrived to cash it and text them and their agent would pick up the furniture and have it shipped. When the check arrived in the mail it was for $7,500. The people texted why is the check for $4,000 more than you promised to pay? The person texted for them to give the difference to the agent so he could pay for the shipping. The people deposited the check in their account, it was supposedly a cashier’s check. A person came by and picked up the furniture with a rental truck and they gave him the $4,000. A week later the bank called and said that $7,500 check was returned it is on a non-existent account and we have charged you account. The bank said you have one week to pay the $7,500 to the bank. The people have sent multiple texts to the person with no response. They are out $7,500 and their furniture.