Police warn over 'cleared' cheques scam

Detectives are warning of a new cash fraud which has led victims effectively to send their own money to conmen. The scheme, dubbed "criminal cashback" by police, sees fraudsters net an average of £5,000 by targeting people selling goods on internet sites or classified ads.

A spokesman for the Metropolitan Police Specialist Crime Directorate said victims are contacted by a criminal who claims to want to buy their goods. The buyer will ask to send a cheque or banker's draft for significantly more than the asking price, proposing that the vendor returns the difference.

Police said victims misunderstand bank clearing. "Once a cheque or banker's draft has 'cleared', it will show in an account as a credit," said the Scotland Yard spokesman. "However, if it is fraudulent its value will be taken back out once this fact is discovered."

He said the victim and not the bank was liable for this loss.