Beware of used car buyers with stolen checks

MONTEBELLO, Calif. (KABC) -- A warning to anyone trying to sell their used car through personal ads: beware of buyers with stolen checks. It's a scam that could end up costing you money. You could even face fraud charges.

Richard DiStefano of Montebello is selling his 1999 Ford Mustang Convertible. But a few days ago, he thought he had sold the car.

After placing ads online in the Recycler and on Craigslist, DiStefano got a call from a guy who really wanted the car and sent him a check right away from a company based in Massachusetts.

"This was the first one who said he was actually going to send me a check, so I figured I got nothing to lose, wait till the check clears," DiStefano said.

Funny thing is, the check was for $5,500, $3,000 more than the $2,500 asking price.

"He said he was going to send more to cover the shipping, but I didn't think it was going to be this much more," DiStefano said.

When DiStefano went to his bank to cash the check, the bank teller told him that the check had been reported stolen, and that if he had cashed the check, then DiStefano would have been liable for the full amount of $5,500 and he might even be prosecuted for fraud.

"I would also have to defend myself that I wasn't part of this whole thing," DiStefano said.

His experience is a warning to everyone trying to sell a used car.

"The only time I'm ever going to sell this car is if someone comes here and hands me cash or a cashier's check," DiStefano said.

But even a cashier's check can be bogus. Take cash only, or if handed a check, go directly to the bank and make the deal there after the teller says the check is real.