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Scammers, Stop Scamming!

Written by Sean Valant

Monday, June 4th, 2012

It is no secret that the web hosting industry is the target of a lot of fraudsters, scammers, spammers and various run-of-the-mill riffraff.  The anonymity that the Internet can provide seems to be far too fertile of ground for those simply looking to take advantage.  It would be fantastic if everyone was always honest and never attempted to proverbially hoodwink those that are either more honest or less naive than themselves.  However, the world we live in is one in which many things simply cannot, and should not, be taken at face value.

Fortunately, the Internet is also an excellent tool for exposing various scams and raising awareness such that less people are prone to being taken advantage of; the pyramid schemes that Grandma fell for (it’s true, she did; ask her about it) via snail-mail back in the day are simply not possible these days.  So, schemes and scams have evolved.  As HostGator has grown over the years, we have become a larger and larger target for scammers.

We like to think these days that it’s pretty hard to get one over on us, we’re pretty sharp cookies with pretty keen eyes.  This wasn’t always necessarily true.  The scam that I am about to describe to you, when it was first perpetuated on us, did initially cost us about $20,000.  We were ultimately reimbursed these funds, but lesson learned!

In it’s most simple form, the scam works like this: Scammy McScammer targets a business or an individual and engages in the act of purchasing an item from them.  Let’s say the item in question costs $500.  Scammy will then send a check via FedEx or Priority USPS for $700 and contact the seller to inform them that they either “accidentally” or for some other made-up reason sent a check that was greater than the amount due and request that the balance be returned to them, in some way convincing the target that they should go ahead and send the amount prior to the initial check actually clearing… because it won’t.  The target sends the scammer a good check, which the scammer promptly cashes.  The fake check of course bounces and the scammer then has the target’s money.  Where does the scammer get these fake checks?  Anyone can easily purchase check-making software from virtually any office supply store and begin printing checks, be they for legitimate or illegitimate purposes.  If you have ever seen the movie Catch Me If You Can, it’s basically a modern day version of that scenario.

Where does HostGator fit into this scam?  We definitely didn’t receive fake checks and then mindlessly send out real ones.  What happened was scammers made fake HostGator checks (with real account and routing numbers) and sent those to their targets.  There are now multiple safeguards in effect to prevent this from ever being successful, so please don’t use this blog post as a how-to for beginning your scamming career.  We do receive about a dozen fake checks each month that are used in an attempt to scam an innocent individual or business.

The most recent attempt to utilize this scam involved a $2,850 check and the request to purchase a $100 Toyota Tundra factory stereo on Craigslist.  Essentially, the scammer said “here’s a $2,850 check, please deposit it into your ATM and take out the cash, keep an extra $100 for your trouble and send the rest to me via Western Union.”  Seriously.  If you’d like to see the actual email, click here.

The intended target of this scam smelled a rat and contacted us, as is what most often happens in these cases.  We now have not only the email that I shared with you, but also the original check and even the USPS envelope that was used by the scammer.  We also have a very healthy relationship with various levels of law enforcement.

Do not let yourself fall victim to an Internet scammer!  If something seems too good to be true, then it is.  If something seems like a scam, it is.  Don’t fall prey and don’t hand your hard-earned money over to any two-bit trickster.  Notify the proper authorities and let’s put criminals where they belong.

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Comments
  • http://vsocio.com Muhammad Usman

    yup agree///

  • http://www.facebook.com/ian.thalotus.simmons234 Ian Simmons

    Seems like it would be common sense to make sure the check clears before refunding the incorrect amount. Not to mention the fact that if they make such a mistake as sending you $200 more than they were supposed to they are either completely incompetent (not someone you want to do business with) or they’re up to something.

    I think the reason some people fall for things like this is because they are good people and were raised to assume other people are good too. If Grandma fell for a scam it’s not because she’s old. It’s because in her day people were honest and good. Sadly the reason it is becoming harder for scammers is because people are realizing more and more that you can’t rely on others to be good and honest any more but there are still good people of all ages who will fall for these scams.

    • http://twitter.com/paoligarcy Paolina Garcia

      Amen. But on the flipside, in a secular society that places money as the ultimate determinate of political power and status (as opposed to the old system of the King deciding it), how can one make a moral case against greed without religion?

      We’re basically strangling out the aspects of our lives which gave us that moral clarity to know this is wrong. How can a secular, materialistic society not fall to such behavior? There is not even the primal ethnic unity that is common in most countries (i.e. don’t scam your fellow ethnicity). America is in deep trouble if the government can’t keep giving welfare to placate the greedy, secular masses.

  • http://www.facebook.com/mattt.schwartz Matthew Schwartz

    Had the same scam sent to me me for an ad I posted on Craigslist. The aggravating thing is that you can’t call the police to have them arrest the “shipper” when they show up to collect. No crime has been committed unless you cashed the fake check, in which case you are the one that faces the legal consequences.

  • http://www.facebook.com/maxxim1412 Maxim Chicheyev

    This is a very good and instructive article. Liked to read it.

  • http://profile.yahoo.com/3R7OZJT6DIRBDPOKQNVXNXZWZE SandyW

    I had a similar situation result from a professional listing with an organization website. All the professionals were sent scam business propositions. An unsolicited $5,000 check came in the mail. I did not know the business the check was written on so I suspected a scam. I took it to the bank. The bank was willing to cash the check no questions asked even though I kept saying I was pretty sure it was a bogus check. It took 15 minutes for the bank to determine that it was bogus! I understand it took up to 6 weeks before the check would bounce, which gives the scammer plenty of time to disappear after collecting the goods. I make it a practice to walk with an online buyer to his or her bank and get the cash if they want to write a check. Otherwise cash is the only currency (use those pens to detect fakes.)

  • grabensomeair

    I just want to say I just read the e-mail. The grammar would make me suspicious, you should at least do a spell check if you want to look professional.

  • Compare Web Hosting Service

    You really have to watch out these days, the power of web creation allows scammers to hide, mask, cover up, and make their tricks seem legit. I stay away from things that don’t have phone numbers, pictures, or legit prices, especially when looking for something on say craigslist. Read thoroughly, use your common sense and gut feelings.

  • http://twitter.com/mas_fb Mas FB

    OMG, talking about SCAMMING ? Inside your own hosting u’ve got a SPAM/SCAM site for “Facebook’s users” and you don’t know it ?

    How could you explain this?
    http://www.terrorificity.com/Apps/

    Just “see”, please don’t allow the chrome and firefox extention because these files are coded to spam Facebook’s accounts.

    I try to email you, but there isn’t “legal” department in “hostgator.com” :(
    Well, I hope somebody can STOP this site.

    Regards,
    http://www.MasFB.com

  • Mary

    A few years ago I had someone who tried the same scheme. I did try to discourage him and he sent a “check” anyway in a rather expensive method. I immeditaly shredded it. Somehow he had my telephone number and kept calling. I guess he finally realized I had actually shredded his check and was not going to send any money and gave up.

  • http://www.facebook.com/marie.nicollette.9 Marie Nicollette

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