Attorney General urges Hoosiers to follow simple precautions to eliminate risk with classified advertising
By Molly Butters
INDIANAPOLIS - Attorney General Greg Zoeller reminds Hoosiers how to spot and avoid scams that use online and print classified advertisers. While the vast majority of classified ads are legitimate, it is important to remember a few basic tips to avoid problems as scammers continue to develop new tricks.
"Effective consumer protection comes from giving Hoosiers information on how they can best arm themselves to avoid scams rather than waiting to receive complaints. It is too late to protect someone once they have become a victim," Zoeller said. "A consumer knowledgeable about typical scam techniques can protect themselves and avoid victimization. I appreciate the partnership with the Hoosier State Press Association and the Indiana Broadcaster's Association in their support of my mission."
People who have placed classified ads have been victimized by scammers posing as legitimate customers responding to the ads.
Precautions to take when posting a classified ad:
Whether posting an ad online or in print, watch out for offers to pay more than the advertised price for the item. Scammers will send a check and ask the seller to wire the excess through Western Union, often out of the country. The scammer's check is fake and eventually bounces and the seller loses the wired amount. While banks and Western Union branches are trained at spotting fake checks, these types of scams are growing increasingly sophisticated and fake checks often aren't caught for weeks. Funds wired through Western Union or MoneyGram are irretrievable and virtually untraceable.
Precautions to take when responding to a classified ad:
Do not send money for an item sight-unseen. In 2009, the Attorney General's Consumer Protection Division received reports of Hoosiers responding to Craigslist ads selling cars for unusually low prices. The ads described an urgent situation to sell the car because of a military deployment and included pictures of a vehicle. Several people lost thousands of dollars when money was wired through Western Union to buy a car that didn't exist. Money wired through Western Union can be forwarded to branches all over the world, and it is nearly impossible to determine who retrieves it.
To prevent these and other types of scams from reaching Hoosiers, the Attorney General's office has a fraud alert program allowing anyone to sign up to receive emails and text messages about frauds, such as and scams. In an effort to expand the reach of the fraud alerts, Zoeller has partnered with the HSPA and the IBA to disseminate consumer protection messages through their vast network of Indiana newspapers, radio and television stations.
Common red flags for many scams include:
* An unexpected genuine-looking (but fake) business or cashier's check arrives in the mail
* The seller of an item asks for a partial or full payment upfront, after which the goods will be shipped
* A "too-good-to-be-true" job offer involves receiving payments from customers, then wiring funds via Western Union or MoneyGram
* Buyer/Seller refuses to meet face-to-face before agreeing to a transaction
* An email or letter requests payment of taxes or costs in order to collect sweepstakes winnings. Payment usually involves Western Union or MoneyGram
Tips for avoiding classified ad scams:
Make arrangements with people you can meet in person in a public place.
Be extremely cautious of requests to wire money via Western Union or Moneygram.
Remember that fake checks are common and banks hold their customers responsible for the funds
Never give out financial or personal information such as bank account number, social security number, or birthday.
To sign up to receive consumer fraud alerts, visit www.IndianaConsumer.com
The Consumer Protection Division investigates complaints against professionals in various fields to ensure safe and fair commerce. Its work protects Hoosiers from businesses, medical professionals, and other service providers who may fall short in their responsibilities to consumers.
Editor's Note: We take try to screen our online advertising to include only legitimate individuals, but we may miss one. If you notice anything that seems concerning or if you are contacted by a scammer regarding something you have available for sale, we urge you to let us know immediately and also contact the Attorney General's website by clicking here.