How to avoid being scammed?

[cliffdale]

I had a buyer for my boat who offered full asking price.
What is the safest way to receive payment from the buyer? Can a bank transfer be snatched back. I'm thinking if a scammer uses someone else's bank account for payment.

Also how safe is a bankers draft. Is there any way I could loose the money out of my account?

To me it just seems strange someone viewed the boat and said they will pay the asking price. No quibble or survey.

I looking for a 100 percent safe funds regardless of where the money came from. I just have a suspicious mind and cant afford to loose out.

 

[KevinV]

Having a suspicious mind is jolly sensible, and gets you half way safe.

I would certainly not accept a banker's draft until the funds are cleared into your account - in these days of mobile phone banking there really is no need for them.

As for anything else - use a proper sales contract, insist on seeing ID, don't hand anything over until you have the money. If they baulk at any of that they're dodgy.

 

[cliffdale]

But if the money shows up in my bank account, by what ever payment, can it be snatched back.

Loose the boat and loose the money?

 

[KevinV]

But if the money shows up in my bank account, by what ever payment, can it be snatched back.

Loose the boat and loose the money?

I've heard myths about it, but never a confirmed "it happened to me" case. If the account name matches their photo ID I don't really know what more you can ask for ?

 

[Sandy]

I've found cash pretty safe. You can both count it.

 

[zoidberg]

You may find your bank becoming very 'sniffy' if you seek to deposit a large bundle of cash. As part of their obligations under 'Money Laundering Regulations' they are required to report most such transactions and some will simply refuse to accept such monies, as they don't want the hassle from various Government agencies.

Be prepared to be asked hard questions you may be unable to answer.

 

[harvey38]

Certainly Paypal payments can be 'Snatched back', thankfully was on the right side of the Snatch back

 

[ChromeDome]

Ask your bank for advice.

A friend accepted cash for a car. When out shopping the same evening, their house was robbed.

Who could know that a sum of cash was in there?

 

[MisterBaxter]

Once the money has cleared into your account it can't be taken back. As mentioned, prepare a contract; ask for photo ID and take a photo of it; ask for proof of address if the ID doesn't have it, to confirm the address for the contract; and don't release the boat until the funds appear on your statement.
I'd be happy with that process for a sale up to maybe £50k; beyond that you might want to have a third party involved such as a solicitor,.

 

[mjcoon]

But if the money shows up in my bank account, by what ever payment, can it be snatched back.

Lose the boat and lose the money?

In the days of cheque transfers the banks reserved the right to take the money back if there was a problem. So, IIRC, there were two clearance events: provisional and final... I don't know if any of that has been carried forward.

 

[Stemar]

Bank drafts aren't certain until they've cleared. A friend had a computer business and took a bank draft in payment. It was stolen.

I think BACS payments are pretty safe, and that's how I'd expect to pay for something like a boat, but CD has the right answer - ask your bank.

One thing is certain, I wouldn't take cash - it's too likely to be laundered or forged, or a cheque.

 

[dunedin]

Once the money has cleared into your account it can't be taken back. As mentioned, prepare a contract; ask for photo ID and take a photo of it; ask for proof of address if the ID doesn't have it, to confirm the address for the contract; and don't release the boat until the funds appear on your statement.
I'd be happy with that process for a sale up to maybe £50k; beyond that you might want to have a third party involved such as a solicitor,.

Not sure that is entirely true in all cases.

It would help if the OP could give an order of magnitude of the amount of funds involved. Tend to be different for a £500 sale price vs £500k.
If over £20k or so perhaps worth asking for them to get their bank to make a CHAPS transfer (assuming UK buyer). That is what is used for houses etc and is generally secure once paid. I think the Faster Payments generally used from mobile banking etc is pretty secure, but not read the detailed T&Cs.
Not heard of Bank Drafts being used much these days (CHAPS almost entirely replaced them), but back in the day they had issues with people stealing or forging blank bank drafts, which then bounced 3 or 5 days later when they reached the bank that had been impersonated. Cheque clearing is faster these days, but paper is rarely very secure.
Cash has its own risks, as noted in posts above.
All the above is all to be treated with caution as not an expert. But neither are most bank branch staff, if a branch still exists. Few branch staff will understand the details of payment systems and fraud systems.

 

[j24jam]

Cash is the only 100% risk free way to complete the transaction.

If the value is too high to consider cash, then you should involve a broker and lawyer who will produce contracts and handle the payment transfer.

 

[jwilson]

MisterBaxter says "... Once the money has cleared into your account it can't be taken back ".

Sorry, cheques and bankers drafts can appear to 'clear' and you can see the balance in your account. Days later the money can 'unclear' and disappear if the cheque or draft is not honoured. Bank drafts have been known to be fakes. "Faster Payments", BACS or CHAPS transfers are the safest.

Just as important is a educated assessment of the reliability of person the money is coming from. A sight unseen full price offer always raises red flags. The OP's buyer has seen the boat so the OP has presumably met him. We (Yachtsnet) have sold more boats at full asking prices in the last 2-3 years than in the previous 20 years. So it is unusual, but not that unusual.

 

[dunedin]

Cash is the only 100% risk free way to complete the transaction.

If the value is too high to consider cash, then you should involve a broker and lawyer who will produce contracts and handle the payment transfer.

Absolutely not risk free - due to counterfeit cash and strong arm recovery methods (as posted above). I suspect you are not familiar with the scheme rules for CHAPS and SWIFT payments.

 

[Zig Zag]

You could ask a broker to handle funds, they may take a small fee but it gives peace of mind to one another

 

[cliffdale]

Thanks for your replies. I have gone with the advice to contact a broker to handle the transaction.

 

[j24jam]

Absolutely not risk free - due to counterfeit cash and strong arm recovery methods (as posted above). I suspect you are not familiar with the scheme rules for CHAPS and SWIFT payments.

Accept the cash at the bank and have the buyer pay it straight into your account.

 

[MisterBaxter]

MisterBaxter says "... Once the money has cleared into your account it can't be taken back ".

Sorry, cheques and bankers drafts can appear to 'clear' and you can see the balance in your account. Days later the money can 'unclear' and disappear if the cheque or draft is not honoured. Bank drafts have been known to be fakes. "Faster Payments", BACS or CHAPS transfers are the safest

Apologies - yes, I was thinking of bank transfers not cheques or bankers drafts- it's been a very long time since I handled either in a large, personal transaction!

 

[Ribtecer]

When I sold my Rib last year, I had the money paid in to one account whilst I still had control of the boat, I then immediately transferred it to another account they did not have the details of, I then released the boat.

It's a horrible world out there.