posted on April 12, 2004 06:56:43 PM new
WARNING TO GEM DEALERS: BOGUS CASHIER'S CHECKS
Reports are filtering to the Gemstone Forecaster that a group of scam artists are targeting gem dealers.
In a recent case, an individual purporting to be Jack Gates, a lawyer from Birmingham, Alabama, called a diamond dealer stating he needed two matching two carat size jewelry quality diamonds (H-I color, SI clarity) for his girlfriend. He confirmed the transaction and instructed the diamond dealer to ship the goods to another address in Atlanta, Georgia. He called the diamond dealer stating he was at the bank to wire the funds to the diamond dealer's bank account, but mentions the bank is having computer problems.
The next day, instead of a wire, a cashier's check arrived Federal Express with a preprinted airbill (but paid for in cash) from the First Nations Bank, 2180 Sixth Avenue North-First Floor, Birmingham, AL, 35203. Along with the cashier's check was a cover letter from the bank stating the funds were being submitted by the bank on behalf of the client, that the funds were guaranteed and that the cashier's check was FDIC insured. The letter was written and signed by Jami St. James, Vice President-Major Accounts.
Irregularities in the letter caused the diamond dealer to become suspicious so he called the bank at the number on their letterhead and was assured by Jami St. James the cashier's check was good. Still unconvinced, the diamond dealer called information and was informed by the operator there was no telephone number for the bank. The telephone number for the law firm the scam artist said he worked for is disconnected. In other words, the laser printed cashier's check and the bank are both fictitious.
What do we know? This scam includes at least three people; the caller, the fake bank officer, and the drop off. Beware of this scam and its mutations and remember a cashier's check is not a cleared instrument until the funds are released to your bank!
INTERNET RETAILERS & AUCTIONS NOT DISCLOSING
According to the FTC, fraud and misrepresentation is running rampant on the Internet. Many large retail jewelry chains, small retailers, Internet-only retailers and auction sites are not disclosing gemstone treatments. The FTC visited 100 sites during the holiday season. According to the report, Internet-only retailers failed the most in gemstone disclosure. Of the 64 gemstone sites, only 5% correctly disclosed treatments prior to the sale and only 37% of 58 auction sites were in compliance. According to the FTC, you must inform the consumer if the gemstones were treated before the sale is consummated. If the consumer would not necessarily see the disclosure page before buying, the site was not considered in compliance.
-sig file -------we eat to live,not live to eat.
Benjamin Franklin
posted on April 12, 2004 07:07:55 PM new
Thanks, Stop, for posting this info.
We all need to be aware of the scams that are rampant in this Internet world.
I still think of my friend who clicked a link in a bogus eBay email and put in her info. Her account was hijacked by someone in Australia. Thankfully eBay caught it the same day it happened, preventing some $800 of listing fees going to her credit card.
