New Visitors Privacy Policy Sponsorship Contact Us Media
Baby Boomers Family Green Home and Auto In Critical Condition Just Starting Out Lifestyle Money
- advertisement -
Bankrate.com
News & Advice Compare Rates Calculators
Rate Alerts  |  Glossary  |  Help
Mortgage Home
Equity
Auto CDs &
Investments
Retirement Checking &
Savings
Credit
Cards
Debt
Management
College
Finance
Taxes Personal
Finance

Scam Alert

Lured from an auction into fraud
Pop quiz: If you are on an auction site and you get an e-mail from someone who offers to sell you the same item you were just bidding on for less, do you take their offer?

If you said yes, you are Grade-A-prime scam material.

Why shouldn't you take the offer? Because of Michael D. Hoffert of Florence, Ky.

Hoffert would contact people who were bidding for items on auction sites. He claimed he had the same items, but was willing to sell them at a lower price. The victims wired cash to Hoffert or sent him money orders. In return, Hoffert sent nothing.

- advertisement -

Hoffert was arrested in November of 2003 -- but that doesn't mean there aren't many more like him who are still getting away with it.

In a variation on this scam, auction losers are sent an e-mail with a link that offers the same product they were bidding on -- but at a better price. Once they visit the site, they are asked to "register" by providing their name, bank account information and passwords.

Then the victim "wins" the auction and is told to send the payment to a (fake) escrow site. The victim has now lost his cash and his identity has been stolen.

The United States Secret Service together with the Romanian General Directorate for Combating Organized Crime recently arrested a scammer in Alba, Romania, who used this method to bilk online victims out of $500,000.

Read about more scams.

 
-- Posted: Jan. 16, 2004
   

 

 
 
Print   E-mail

30 yr fixed mtg 4.11%
48 month new car loan 3.21%
1 yr CD 0.70%
Alerts


Mortgage calculator
See your FICO Score Range -- Free
How much money can you save in your 401(k) plan?
Which is better -- a rebate or special dealer financing?
VIEW MORE CALCULATORS

BASICS SERIES
Begin with personal finance fundamentals:
Auto Loans
Checking
Credit Cards
Debt Consolidation
Insurance
Investing
Home Equity
Mortgages
Student Loans
Taxes
Retirement

MORE ON BANKRATE
Ask the experts  
Frugal $ense contest  
Quizzes  
Form Letters


- advertisement -
- advertisement -

About Bankrate | Privacy Policy/Your California Privacy Rights | Online Media Kit | Partnerships | Investor Relations | Press Room | Contact Us | Sitemap
NYSE: RATE | RSS Feeds |

* Mortgage rate may include points. See rate tables for details. Click here.
* To see the definition of overnight averages click here.

Bankrate.com ®, Copyright © 2014 Bankrate, Inc., All Rights Reserved, Terms of Use.