How not to lose your shirt on craigslist (Unless you're selling it)

With these hard economic times it makes sense that more people are looking to sell items on Craig's list or other online yard-sale or auction sites. For the most part you are safe so long as you observe a few of the following safety tips.

A person may try to contact you with the following scam: "Hey I noticed you are selling yyyy item, the crazy thing is that I have a cashier's check but it's $100 more than what you're asking for. If you're willing to cash the check, and give me the remaining amount I would be glad to buy your item."

The cashier's check is counterfeit, and by the time the bank figures this out you are out the $100 deposit, the item you were selling, and the amount that you paid to the scammer.

Tip: When selling from Craig's List or other classified advertisement, deal in cash only unless it is absolutely someone you trust. Cashier's checks cost about $2 - $5 there's no reason why a person could not cut a check for the exact amount. Even then, you should arrange for the check to clear (Up to three weeks) before giving your item over to the buyer. Cash is always better.

Ebay: a few days before your auction ends you receive an email "I will be willing to pay you double what you are asking if you close the auction and use a different pay site to purchase your auction. This can also work in reverse where you bid on an item and the person offers to end the auction early if you use a different pay site. Paypal insures your purchases against fraud, if you use a different payment site you could very well be out of your item and your money.

Tip: Always pay or collect payment via trusted and guaranteed methods. Check your credit card terms to see how much they restore if you are the target of fraud. The major credit card companies give 100% back with a few conditions. If you pay with a regular debit card, you may lose out. If you fear you are the target of a fraudulent purchase, don't hesitate to contact your credit card company. The sooner you catch it, the faster the process goes. I've personally been through the process three times.