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Today came his reply with the kicker: "as soon as you get the money order cleared,i will want you to deduct $300 and wire the balance of the money order via western union money transfer to my agent". I can only assume that the cheque will be either invalid or drawn on some third party's account without their knowledge.
Is this a well-known scam? I haven't encountered it before.
Although, around my area I don't know if they would even cash it. The last time I was at the bank they had a sign up notifying customers not to try to cash or deposite moneyorders originating from questionable sources. They also had a brief description of the scam in question.