Seller Beware: online car buyers using PayPal fraudulently, By Tracey Vale

On the first day that we advertised our car for sale through http://www.carsales.com.au/, I received a text message on my mobile from an interested buyer. She left her 'personal' email address and asked that I email a reply.

I was not near a computer at the time, so I texted back, only to have the operation disallowed. Later, I emailed her the following:

'Hi Katy, Yes, the car is available. Email me any questions.' The email address was to a Katerine Sanders at a yahoo address. She had signed off as 'Katy' in her text message.

Her response began with a 'Hey', with no reference to my name. We later realised that this was a generic letter and not a personal response. This email went as follows:

"Thanks for the prompt response.

"I will like to know more about its condition and possibly have more pictures of it I will be very glad to have more pictures of it. Do as well advise on the least amount you will like to give it away. I will be very glad to conclude this as soon as possible.

"Due to the nature of my work, I will not be able to come for the inspection,because am presently out of the country. I will be handling the pick up of this merchandise through a legitimate shipping agent.. The vehicle will be picked up after you receive the full payment, so i really need to know the mode of payment because i need this vehicle urgently. Hope to read from you asap.

"Thanks again and hope to hear from you soon.

Katy."

Now at this point I'm thinking: why does she need more pictures? There are 14 available with our advertisement. She has also asked about the price, which has also been clearly stated. In my return email, I tell her the price and explain why I think this is fair based on a car-yard evaluation. I also ask what other photos she might require.

Her response, which includes thanking me for telling her that the vehicle has not been in any accidents (which it hasn't but I did not say this), was as follows:

"Thanks for sending me more information about the car. It was really of immense help.  I am glad to know that the car is of a good mechanical condition and has not had any accident in the past. Your sincerity is something I see very necessary to appreciate. Thanks a lot.

"I have actually tried to get this car here earlier from here but most of the ones I got either have one huge mechanical fault or the other and some have even had accidents in the past while some are extremely exhorbitant.

"I could have come and inspect the car and then pay you in cash,but i can't due to the nature of my work.I am an oceanographer, i am at sea right now..I am actually trying to get this car for my first son will be adding a year to his age in about 3 weeks as he has always been a fan of this car.  So I think its worth paying whatever the shipping charges will be just to put a laughter on his face.

As to the price, I will offer you $14k. So if you deem the offer good enough, I will be very glad to make the payment asap through my PayPal account as I am currently offshore and I won't definitely be able to make it to my bank to make bank wires across to you.

"As to shipping, you need not worry yourself about how the car will get to him in Malaysia as I will contact a shipping company that has their headquarter situated in Malaysia and they will handle the pick up and shipping.Please note that i will not be needing the vehicle registration because it will be invalid over there so please remove the registration.. I will however be needing your contact address to be able to get the shipping quote from the shipping company.

"Do get back to me asap with your PayPal Email address and Full name so that I can remit the payment asap.

Cheers,

Katy"

Firstly, it seemed strange that she would purchase a seven-seater for her son, but then--maybe he's not as young as I'm imagining. So I let that slide.

Secondly, if she is so wealthy that she doesn't care what it costs to ship a car from Australia to Malaysia, why doesn't she buy him a brand new car? Her excuse is that her son has always loved this car--it is a white station wagon! Alright, the front lights are fancy, making it a unique-looking station wagon....

Thirdly, she is offshore and therefore claims this as the reason that she can't get to a bank and can only use PayPal. Also, she is claiming urgency by using the son's birthday as an excuse.

Fourth, she is offering $1000 more than the asking price--unheard of when selling a used car.

And my fifth concern was when she stated "most of the ones I got either have one huge mechanical fault or the other and some have even had accidents in the past." I think: what does she mean "most of the ones I got"? Does this mean she has some means of returning the vehicle if she doesn't like it, and would she be protected in doing so by PayPal? I think not but I am curious as to what she intends to get out of this if she is not a legitimate buyer.

This leads me to Google. I type in the search 'PayPal car purchase scam' and a multitude of matching results appear from forums to articles. All detail the same type of email approach with the same reasons as to why the purchaser can't get to a bank and why the purchase is urgent.

Those bitten by this scam have lost around $750 to $7500. Victims of the lesser amount had been asked by the fraudulent purchaser to pay the shipping cost to a Western Union Bank, claiming that they had paid this amount by raising the offer on the car. The seller was told that PayPal would not release the money unless this shipping fee was paid.

With just a brief look, it appears that victims have been scammed since 2009 from the U.K., New Zealand and Australia. Boats, motorcycles, trailers and horse floats have also been targetted items.

An article from Auckland's Manawatu Standard, states that a New Zealand woman was humiliated by the fact that she had fallen prey to the scam but wanted others to be made aware. She could not afford the $750 she lost just before Christmas and it meant that her children had to go without.

She said that the exchange of emails had given her a false sense of trust. It seems to me, from reading the forum complaints, that women may have been particularly targetted.

Another name given as the buyer, was Susan Owen and another was Rose Kelly. A Mark Smith has also been used. I believe women's names are being used in these transactions with other women as a means of building trust, as well as the use of the mother-son relationship.

It should be mentioned that letters from PayPal to the seller were fraudulent and were not sent from PayPal's offices. PayPal has since placed limitations on their system and have listed scam types to be aware of on their website. (See their advice below.)

PayPal does not hold any money in these instances and any money that is transferred to these scammers will be lost. Wired money, the type requested for the bogus shipping fee, is not traceable or returnable.

It comes back to the old adage--if it's too good to be true, then it probably is.

PayPal's advice: (as cited in a paper from WA ScamNet, accessed at http://www.docep.wa.gov.au/ConsumerProtection/scamnet/Scams/Online_car_sales_sca.html )

• -  Any genuine PayPal emails advising of the payment of funds into an account will not include caveats regarding additional payment transfers required to third-party organisations
• -  PayPal recommends that customers check their account balance by logging in securely at http://www.paypal.com.au/ and only completing transfer of goods on such items once payment is received into the account
• -  PayPal encourages customers to report suspicious e-mails to spoof@paypal.com
• -  PayPal also encourages customers to  visit its online security centre for additional tips on avoiding fraudulent scams.