In the world of business and personal life there are many good people. Reliable and trustworthy people. There are also those who are less than reliable and trustworthy and we try to sniff them out and avoid involvement.
The old adage that if its too good to be true it isn't is a good one that reminds us to use at least a modicum of caution when dealing with more or less unknown entities. This alone explains why we gather around known names. But as Bernie Madoff taught us, that is not enough.
A brief episode was conveyed to me by a client wherein she was responding to an ad for a high end sewing machine. The ad (I saw it) showed good quality pics of the machine, and a kindly older women operating it, even one looking up with a Mona Lisa smile in one. There was also a short video that demonstrated the machine functioning flawlessly. Because the brand of the machine is well known, that much was fine and everything said about it including the asking price tracked.
The seller provided direct texting info to answer questions etc and my client used it to ask several and got reasonable answers that seemed in the know and professionally aware. When an offer was made, the seller accepted and asked for a down payment to stop the ad and proceed to a final sale to be done by check. The clearing time was only 7 days and seemed appropriate before a shipment was to be made. The down payment requested was not much being just $250 on a $3000 machine. The payment was to be made in the form of an eBay Gift card. My client thought it odd but the seller explained they had been previously victimized when providing account data and the eBay card was safer. In getting the card at at a local Walgreens there was packaging and nothing clearly to be seen like numbers, codes etc.
The seller asked that a picture be sent displaying the front and back of the card removed from its packaging and further a pic with the last 4 digits of the activation code scratched off and showing. This was explained to verify legitimacy of the down payment and thereby putting the ad on hold for the eventual check payment to clear was safe. It was explained that the card could not be used or spent using only the last 4 digits of what was said to be a 16 digit number. Fair enough, even the government only wants the last 4 digits of SS#s on documents etc so it seemed normal.
Within minutes of supplying the eBay card pics as described, the communication stopped. The ad disappeared too. It seemed like some kind of a glitch to my client and she attempted to call the number that she had been texting. It was not in service. Huh?
My client then began to feel some kind of scam had taken place but only the last 4 of 16 digits was supplied in the pic so that was safe right? Surprise, eBay cards display all of the number on the regular uncovered print right on the card and these are reiterated under the scratch off activation with the unshown last 4 digits…WHAT? Yes, all of the activation code numbers are in clear sight on the back of the card except for the last 4 digits which are under the scratch off. The scam here is gaining trust that the last 4 digits do not put activation at risk. Who knew?
My client then went to eBay and tried to buy something needed using the card and it had zero value. The seller/scammer had already used the $250 value in a matter of minutes. The time it took was minutes and my client said she was kept busy with longer delays in text responses so there was plenty of time for the scam to work and the card's value to be absconded with.
I felt bad from my client and her experience taught me that caution and knowing who you are dealing with is still very important. Also important is to use that little gut twitch when something seems off and put the deal on hold. These scammers are very good though so I can't fault my client. The mistake good people make is to think others are good too. That Mona Lisa smile and smooth explanations were calming but the scam is age old. Gain a little trust, ask for a modest amount and grab the cash from an overly trusting dupe. Ouch!
OK, I posted this only to make the point. Trust but verify. Know who you are dealing with. And lastly when a doubt of some kind arises, walk away.
Best,
Donn Marier
DM-Your Own CFO