Packard Forum Index » General

Mayfair1953 wrote:
Former Federal Reserve employee here, just saw this and had to respond.

The ONLY safe way to purchase online is through a bank to bank transfer. This method is NOT a wire transfer. In a bank to bank transfer, the seller's bank and the buyer's bank communicate directly, without any financial interaction between the seller and the buyer. The buyer provides the contact info of an employee at their bank to the seller, who gives that information to the seller's bank. The banks then communicate to ensure each is legitimate (which the banks can easily do with guaranteed result), the funds are present and arrange to move the money from an account designated by the buyer to one designated by the seller (the buyer and seller never know of the other's account information). The movement occurs instantly when ordered by the buyer. There is a guarantee that the money is moving to a legitimate bank, a paper trail of the transaction and the receipt of the money in the seller's account. There is no possibility of the money getting "lost" and no opportunity for money laundering. The buyer and seller must have accounts at legitimate banks, and the buyer and seller are protected by Federal Bank Fraud laws. The seller can't claim they never received the funds, and the buyer can't claim the seller received the funds when they did not.

In addition, since the transaction occurs instantly, it can be ordered at any time, for instance at the time the shipper picks up the car. Once the shipper confirms he has the car, the buyer can release the funds and they settle in the seller's account in minutes, and the seller can verify that before releasing the car to the shipper.

Talk to your bank and they will always advise a bank to bank transfer, for your protection and the protection of the other party.

If a seller or a buyer refuses to use a bank to bank transfer, walk away....fast. That party likely does not have a bank for your bank to interact with, a sure sign of a scammer. They don't want banks involved because of the security built into the banking system.

Wire transfers are completely different and are subject to fraud and forgery, with no bank protection for either seller or buyer. One can send the wire transfer and remove the funds before the transfer settles.

Certified checks and personal checks are a definite no, both are subject to forgery and open the buyer, particularly, to identity theft and use of fraudulent checks against their account in the future. Checks contain personal information and bank account information, just what the scammer needs for identity theft, which is often the real reason for the scam in the first place.

Money orders are worse than checks. Easily forged, no bank protection and no paper trail.

PayPal, Venmo and other payment platforms have become havens for scammers and should now be avoided. Again, no bank protection, no paper trail.

REMEMBER: The scammer of today doesn't want your money as much as they want your information. Any method that provides them with any of your information should be avoided at all costs.

If you suspect you've been scammed in any way, notify your bank immediately. They can advise you on how to protect yourself from identity theft and future fraud against you.

Also, don't rely on photos! Scammers can hack photos and show only a few at first then show more as you ask for them. It seems like they're taking more of them for you, but they aren't. And the photo's may be very old. There is a car online for sale now, but the photo is dated 2009. Alot can happen in 16 years! Ask for a photo of some obscure part of a car or part, be wary when you can't get it. Ask to Facetime immediately and without warning. If they can't do that, move on. If they are tech savvy enough to post pictures online, they are savvy enough to do what a 10 year old can do with a smart phone. The "seller" likely does not have the item.

Look up the seller's Profile and About Information on Facebook. If it seems odd, such as they just joined, or they are a young lady selling a 1935 Packard, beware. Where do they live in relation to the car? I saw a Willys for sale in Jacksonville, Florida with photos of it in a driveway that looked nothing like Florida. The seller's profile said he lived in New Jersey. It was also listed by a different seller, who's profile said they live in New Orleans. Same pictures and a search of Willys in Jacksonville popped both ads next to one another, at two different prices.

Another issue is auto paperwork. It has to be right. I see a lot of ads that say: "Selling for a friend" or "Selling for grandfather who passed away". Watch out! Who owns the car? Grandpa died, but who's name is on the title? Has the car been probated and the title transferred? Is there a Transfer on Death to grandma, but grandson is trying to sell it? Are there liens against the car? You can only buy a car from the legal owner, not a friend of the legal owner nor a family member who is not the legal owner. Therefore, you can only negotiate with the legal owner or a legal designate. You can be on legal quicksand if you get this wrong. If grandpa died and one grandson is selling the car without being the legal owner, other family members can dispute the sale, and you could lose the car and your money. Get a lawyer and get it done right. The legal fee is cheap insurance in today's world.

Sorry for the length, but it's no longer a nice world full of ladies and gentlemen and we have to protect ourselves. Since we're all older, they're hunting for us.