posted on April 26, 2005 06:21:26 PM new
April 26, 2005
A Common Currency for Online Fraud
Forgers of U.S. Postal Money Orders Grow in Numbers and Skill
By TOM ZELLER Jr.
Through a dating site, Kevin McCrary began corresponding with a woman in Nigeria. The woman asked him
to buy a computer and mail it to her, and sent him postal money orders that turned out to be forged.
Fake checks have been the stock in trade of online fraud artists for years. Now authorities are noting a surge in schemes involving sophisticated counterfeiting of a different form of payment: United States postal money orders. And the fleecing of victims often begins in an e-mail in-box.
In the last six months, the F.B.I. and postal inspectors say, international forgers - mostly in Nigeria, but also in Ghana and Eastern Europe - appear to have turned new attention to the United States postal money order. More than 3,700 counterfeit postal money orders were intercepted from October to December, exceeding the total for the previous 12 months, according to postal inspectors.
Moreover, 160 arrests have been made in the United States since October in cases where people have been suspected of knowingly receiving fraudulent postal money orders or trying to cash them, Paul Krenn, a spokesman for the United States Postal Inspection Service, said.
"The quality of what they are producing is very good," he said, adding that ordinary consumers can easily be fooled. "They are not going to know what they are looking at," he said.
Despite the arrests, however, the schemes often do not involve attempts by the fraud artists to cash the postal money orders. In many cases, unwitting victims, often contacted by an e-mail message or in an online chat room, are deceived into accepting the bogus money orders as payment for items they are selling, or into cashing the orders in return for a fee. It is the latest twist in a long series of Internet schemes that use bogus financial instruments to bilk unsuspecting victims out of merchandise and cash.
The United States Postal Service would not estimate the dollar value of the counterfeit postal money orders it has intercepted. But law enforcement officials estimate that the amount runs into the millions of dollars.
The trend is significant, because unlike private business checks or even other money orders, the postal money order is generally regarded as one of the more difficult financial documents to counterfeit because of its watermarks, security threads and a rainbow of inked patterns and tones.
The fake money orders have been received by small Internet retailers, classified advertisers or others lured into an Internet confidence scheme, from sellers of Siberian Husky puppies in Iowa to art dealers in Indiana. Some consumers, authorities say, are simply not using common sense.
One victim, Kevin McCrary, a 56-year-old Manhattan business consultant, would not dispute that. After falling prey to a fake postal money order scheme, he said, "I couldn't reach around far enough to kick myself."
Single and lonely, Mr. McCrary joined an international online dating site, Elitemate.com. In late January, he was contacted by someone claiming to be a young woman from Nigeria. She - or perhaps he, or even they, Mr. McCrary now concedes - went by the name of Ogisi Douglas.
Their e-mail exchanges were barely a week old before the supposed Ms. Douglas asked Mr. McCrary for his help buying a laptop computer. Mr. McCrary purchased a $1,500 laptop, and after he received two United States postal money orders for $950 each, he sent the laptop to an address in Nigeria.
Neither Mr. McCrary nor the teller at the J. P. Morgan Chase branch where he deposited the postal money orders knew they were bogus. It was only after he was asked to buy more computers and received several more postal money orders that he discovered, after trying to cash them at a post office, that he had been duped.
He had not yet sent out any more computers. But the cost of the first laptop was a total loss: the money from the first two postal money orders was ultimately debited from his Chase account.
"I felt, obviously, a bit foolish for not listening to those little voices that say: 'Something's not quite right here. You don't have all the information on this person,' " said Mr. McCrary, whose parents, Tex McCrary and Jinx Falkenburg, helped define the talk radio format in the 1940's. "But it all moved very fast."
Mr. Krenn said that postal inspectors had been working with other delivery agencies to intercept packages containing bogus money orders as they entered the United States, as well as warning financial institutions to be vigilant. He said tips for identifying counterfeit postal money orders were available online, at www.usps.com/postalinspectors.
The best way to identify a genuine postal money order, postal service officials say, is to look for the telltale watermark, which, when held up to the light, should reveal an image of Benjamin Franklin. Genuine postal money orders also have a security strip running alongside the watermark, just to the right. If held to the light, a microfiber strip will show the letters "USPS" along its length.
The Federal Deposit Insurance Corporation issued a special alert last month, notifying bank executives of the problem, and Thomas Kelly, a spokesman for J. P. Morgan Chase, said that it had issued a security alert to all its branches regarding the counterfeit postal money orders.
In a typical swindle, a seller is sent counterfeit postal money orders in excess of the cost of the item being ordered. The seller is then asked to keep the cost of the purchase and ship back the balance in cash, along with the merchandise.
Dave Thompson, a bicycling enthusiast from Spokane, Wash., said he had received two $1,000 United States postal money orders for "a piece of bicycle equipment worth 50 bucks."
"The postal money order is probably the safest, most recognizable noncurrency negotiable instrument," said Mr. Thompson, who, like many people who buy and sell small items online, said postal money orders were a standard part of the online swap meet. "If this is counterfeited to a wide degree, people will be less willing to accept it and the Internet business will slow down over all."
Sales of postal money orders have already been declining, from 233 million money orders in 2000 to 188 million last year. Even so, that brought in about $230 million in fees - 90 cents for a money order under $500; $1.25 for those up to $1,000, the maximum amount allowed.
At least eight arrests have been made in Nigeria in recent months, said Dan Larkin, a chief for the F.B.I.'s Internet Crime Complaint Center, and arrests in the United States are mounting.
On March 3, Christopher R. Zeblisky was arrested in South Milwaukee, Wis., accused of trying to withdraw the proceeds of a deposit of eight counterfeit $1,000 postal money orders.
A week later, in Charleston, W. Va., Manuel G. Roberts was arrested and accused of possessing of 64 counterfeit checks written for more than $670,000 and 8 counterfeit postal money orders totaling almost $8,000.
And two weeks ago, postal inspectors and F.B.I. agents in Puerto Rico arrested William Arocho-Valentín shortly after they said he had cashed 19 counterfeit postal money orders, traced to West Africa, for more than $18,000. Mr. Arocho-Valentín had $35,000 worth of bogus postal money orders in his possession when he was arrested, the authorities said.
Some recipients of fraudulent money orders have also come under the scrutiny of law enforcement officials.
Phil Barone, who sells hand-made saxophone mouthpieces at www.philbarone.com, says he was questioned last week by police at a post office in Croton, N.Y., after he tried to cash what turned out to be three fake $1,000 postal money orders he had received by mail from a customer in Nigeria. Mr. Barone said his car was searched and that detectives visited his house before they were satisfied that he was not involved in the scheme.
"That was very unpleasant," Mr. Barone said.
Mr. McCrary, meanwhile, is still corresponding with his Nigerian e-mail friend, Ogisi Douglas, who apparently does not know that he has discovered the fraud. He says he is trying to keep her engaged in the scheme until he can find some way to get law enforcement, either here or in Nigeria, to arrest the people responsible.
"It is often said that nobody is perfect," Ogisi Douglas wrote in a greeting card to Mr. McCrary three weeks ago. "But my love for you have made me blind to your faults and imperfections."
Security Features for U.S. Postal Money Orders
Text-only version of Security Features for U.S. Postal Money Orders. At first glance, many of the counterfeit postal money orders now in circulation are hard to spot, but two security features are difficult to fake. Security Thread - A microfiber security strip will reveal the letters USPS, in alternating directions, when held to the light. Fake versions may just show a printed bar. Watermark - When held up to the light, a genuine postal money order will display a watermark of Benjamin Franklin. Fake versions often have no watermark or a crude outline.
| Inspection Service Home |
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Eat grass,kick ass,never go belly up!
posted on April 26, 2005 06:24:00 PM new
if you want to see the watermarks etc,
go to this site
http://www.usps.com/postalinspectors/mofeatur.htm
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Eat grass,kick ass,never go belly up!
posted on April 26, 2005 07:31:09 PM new
Ones from stores like Wal-mart are becoming an even bigger problem. Most banks in Kentucky will now put a hold on your account for 10 weeks and of course if it bad you get charge the same as a bad check. I notice that there are more and more Sellers who do not take checks or money orders.
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Two men sit behind bars,one sees mud the other sees stars.
posted on April 26, 2005 07:35:17 PM new
Once you hear the Name Nigeria,,,,,,,,,,delete, it's fake, get them ALL day long for cars I sell. yeah right, you need a $900.00 sled in Nigeria? and of Course this sled is soooooooooooooo vluable yer gonna PAY to have it SHIPPED????????? hahahahaha,,,,,,I'll send you $2000.00 to do the deal then you REFUND my FRIEND the difference, hahahahahaa........ALL F A K E!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
N I G E R I A,,,,,,,,,,spells,, F A K E,,,,,,,,C O N,,,,,,,,,,,you L O S E......
posted on April 26, 2005 07:39:46 PM new
I think his first clue should have been the fact that he was dealing with someone doing business in Nigeria. Doesn't it seem like this is becoming the #1 scam artists locale?
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Before you criticize someone, you should walk a mile in their shoes. That way, when you criticize them, you're a mile away and you have their shoes. ~
posted on April 26, 2005 07:57:14 PM new
The big problem is, it seems like the only people clued in to the scams in Nigeria, Romania and Indonesia are the Vendio members who read the Ebay outlook. Oh well.......
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
posted on April 26, 2005 08:17:13 PM new
I think I heard here about the policy banks are following now because of the fake MO's that they've been receiving.
Confirmed it with our PO last week and they mentioned that we had 2 they attempted to pass in our local PO recently. They were faded and the clerk thought something was up and checked their authenticity.
Sure enough, they were bogus. They got the ID of the guy who was presenting them ($1800 in 2 MO's) and the Postal Inspectors were called in. Turns out the guy was supposed to keep a percentage and send the cash back to someone.
Just follow your gut. If it sounds too good to be true, it probably is.
Wayne
Never explain -- Your friends do not need it and your enemies will not believe you anyway.
~ Elbert Hubbard
posted on May 1, 2005 08:34:03 AM new
As others have mentioned a good policy is to never, never, never do business with Nigeria. My online store receives 10 to 20 "orders" each week from Nigeria, all send as CC mail to 100's of people at a time, all offering to pay by credit card and all a scam! Clues are that they just want me to send an "assortment of goods" or they order things not even remotely related to my webstore but commonly sold elswhere online (HP Ink Carts for example). Each year one of the major publications asks traveling businessmen to rate each country in terms of corruption. NIGERIA always come out of top. It is a corrupt and dishonest country throughout. When I taught at a college in the U.S. years ago the Nigerian students were almost without exception con-artists and liars. They would literally copy 10 pages out of a book word-for-word including the graphs and turn it in as their original research project work! When confronted about this they would continue to lie until I actually showed them the book and then they would make up all sorts of stories! The best and easiest thing to do is say NO to Nigeria.
posted on May 1, 2005 09:17:05 AM new
my post office here in a small town has been warning me for weeks about postal money orders. when i took some things in to mail yesterday, they said they had 17 fake money orders in the last month! this in a town of about 2,500 people.
posted on May 1, 2005 09:30:33 AM new
A little off-track but here is a postcard I sold of "Tex and Jinx McCrary and Keving and Paddy on vacation in Bermuda" - Kevin must be the older boy - funny he doesn't have "SUCKER" written on his forehead that I can see!!
posted on May 1, 2005 02:29:42 PM new
back in the late 70s and early 80s,the state attorney office in Chicago was looking into student loan fraud,somehow the Nigerian students managed to apply and approved for student loan.
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That short little gnome is...Ralphie's future Daddy!
About 5 minutes after this pic I got SICK SICK SICK on the...OCTUPUS!
Never again!
"I'm going to spend a lot of time on Social Security. I enjoy it. I enjoy taking on the issue. I guess, it's the Mother in me."—Guess Who? Washington D.C., April 14, 2005
posted on May 1, 2005 11:15:46 PM new
ATTN:HONOURABLE CONTRACTOR.
IMMEDIATE CONTRACT PAYMENT. CONTRACT#:MAV/NNPC/FGN/MIN/009.
From the records of outstanding contractors due for payment with the federal government of Nigeria your name and company was discovered as next on the list of the outstanding contractors who have not received their payments.
I wish to inform you that your payment is being processed and will be released to you as soon as you respond to this letter.Also note that from my record in my file your outstanding contract payment is us$23.5 million dollars(Twenty-three million Five hundred thousand united states dollars).
Therefore,you advise to contact the CENTRAL BANK DEPUTY GOVERNOR immediatelyon his direct line 234-1-7768027 via email. Please re-confirm to me if this is inline with what you have in your record and also re-confirm to me the followings
1) Your full name.
2) Phone, fax and mobile #.
3) company name,position and address.
4)profession, age and marital status.
5) Copy of int'l passport.
As soon as this informations are received, your payment will be made to you in a certified international bank draft from central bank of Nigeria and a copy will be given to you for you to take to your bank and confirm it.
You must as soon as you receive this letter call or send your response via email:[email protected]
Regards,
Mr Tunde Lemo
Deputy Governor,
Finance Sector/Surveillance Department
Central Bank Of Nigeria.
posted on May 16, 2005 07:52:53 PM new
Last week, I stopped by my bank (Wells Fargo) to cash some money orders and checks. Had no problem with the personal check from a small bank in a town back east that isn't even on the map, nor with the Western Union money order from Bidpay. But they would not cash the two postal money orders I had. They were both for small amounts, under $30.00. I was in a hurry, so I just stopped by the Post Office and cashed them. Today, I was in the bank and had a little more time on my hands, so I asked one of the tellers about it. She said a directive had come down recently that Wells Fargo Bank will no longer cash U.S.P.S. money orders. It appears they have been hit hard on counterfeit MO's and they will only accept them for deposit, and a long hold will be placed on them. She said it takes at least 30 days for them to get a P.O. money order cleared. Apparently the problem is a little bigger than most people realize. I would suggest that any sellers receiving postal money orders, especially for high dollar items, get them verified as legit and cashed at their Post Office BEFORE shipping.
A $75.00 solid state device will always blow first to protect a 25 cent fuse ~ Murphy's Law
SICK SICK on the...OCTUPUS!