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A scam combining social media and old-school checks has caused dozens of Auckland residents to get out of their cars.
In response, the police are warning about the risks of unregulated online commerce through Facebook Marketplace, where the scams were carried out.
The social media giant said it was sorry to hear what had happened and urged people to be wary of accepting check payments in its Marketplace section.
JASON DORDAY / Things
A selection of cars for sale in Auckland on Facebook Marketplace on Friday.
Auckland Police have received more than 50 complaints from people scammed out of their cars through the check scam in the past year.
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Nine people have been charged in connection with what has become a common scam in the city.
Detective Sergeant Major Callum McNeill of the Waitematā District North Shore Station gave Things a summary of how it works and how to avoid being prey.
It all starts with a criminal getting their hands on a check book, either his own, from an associate, or stealing check books from mailboxes.
Supplied / New Zealand Police
Detective Sergeant Major Callum McNeill warns of the dangers of unregulated platforms like Facebook Marketplace after more than 50 Auckland residents were tricked out of their cars.
They will open a fake Facebook account and approach someone selling a vehicle on the Marketplace section of the social media site, considered a Wild West by police and consumer groups.
The offender then agrees to buy the car, often without even cursory haggling or seeing the vehicle – both big red flags according to McNeill.
After agreeing on a price, the scammer will ask his victim for his bank details, including name and account number.
They will then write a check for that amount and then go to their victim’s bank.
AP
Facebook has urged New Zealanders to be careful about accepting check payments.
There they deposit the check through an ATM with the account details provided and the agreed sale price, McNeill said.
The sale price appears as a deposit in the victim’s account.
But more importantly, it will show up as a “pending” amount.
People should never turn in items if the amount is still outstanding, as this means the money has not yet been cleared, McNeill said.
The scammer will take care of picking up the vehicle and will often hire an associate for this step, he said.
Once they have possession, they will process the ownership change documents online.
“And it’s done and dusted off,” McNeill said.
Between three and six days later, the check is rejected, either because it is stolen or because there are insufficient funds in the account.
At this point, the outstanding amount is written off from the victim’s account.
Things-co-nz
Scammers are using checks to scam kiwis out of their cars.
“Suddenly you run out of money or a car.”
To make matters worse, the car had often already been sold to another unsuspecting member of the public, McNeill said.
“Then finally, when everything catches up, the car is taken from them and returned to the original owner, so we end up with a couple victims of a scam.”
Criminals who carry out the scam have generally heard how easy it is, then get checks and create Facebook accounts, he said.
“It’s an easy way to get a car with the keys instead of having to steal it off the street.”
The senior detective said that in addition to not accepting outstanding amounts as paid, the lessons of the scam include the benefit of using cash.
“Don’t turn in your car without getting paid.”
People should also use more regulated online marketplaces that really guarantee they won’t scam them, like Trade Me or other online car auction platforms, McNeill said.
Victims of the scam range from young to old and hail from Auckland’s three police districts, he said.
Supplied
Jessica Wilson of Consumer NZ says that anyone who operates through the Facebook Marketplace does so without the backing of consumer law.
Jessica Wilson, head of research at Consumer NZ, didn’t mince words when asked about trading via Facebook.
“You have to be very careful when buying and selling products through the Facebook Marketplace,” Wilson said.
“It is a risky way to do business and you will not be protected by consumer law if you are doing business with a private buyer or seller.”
Facebook’s head of communications for Australia, New Zealand and the Pacific, Antonia Sanda of Sydney, said the company regretted learning of the scams.
“We encourage people to contact their local police department if they feel they are victims of a crime, and we echo the advice that the police have given about being cautious when accepting payments by checks.
“We do not allow scams on our services and we take quick steps to eliminate them as soon as we find out.”
