Fraudulent Funds - Theft - Insurance?

[Corbic]

So if someone buys a car using fraudulent means - counterfeit cash, bogus check, etc. Is that covered by comprehensive insurance as vehicle theft?

So buyer gives you $7k in cash, you deposit it and a few days later the bank says it was $5k counterfeit or you get a bogus money order that 3 days later the back calls you about. Can you report it as stolen, do the police report and file a claim?

 

[PhoenixM3]

So if someone buys a car using fraudulent means - counterfeit cash, bogus check, etc. Is that covered by comprehensive insurance as vehicle theft?

So buyer gives you $7k in cash, you deposit it and a few days later the bank says it was $5k counterfeit or you get a bogus money order that 3 days later the back calls you about. Can you report it as stolen, do the police report and file a claim?

My thoughts. The bank should’ve checked for and discovered counterfeit bills at deposit.

 

[Uncle Meat]

I wouldn't think so. Then again... GEICO insurance is currently in litigation to pay out 5.2 million to some ho who got an STD in a car.

U.M.

 

[Steve@TF]

I took counterfeit cash to the bank once. The teller immediately recognized it and confiscated it. They gave me photocopies of the bills and said to call SS if i wanted, which i did. Spoke with an agent who asked for the serial numbers on the bills. (They were killer fakes). He said theyre some of the numbers from a major counterfeit ring theyve been investigating. I was SOL. About a week or so later i read about the SS doing a major busy of a counterfeit ring in Mexico.

My cousin had similar happen to OP. He took a counterfeit cashiers check for a car sale. His bank teller told him it looked good. A few days later they say oops, no good. $13k pulled from his account. He called police and told them what happened. They reported it stolen. A couple days later a woman tried to register it at the DMV but it came up stolen. Poor single mother who saved up for a year to buy a car and paid cash to the guy who scammed my cousin. Police took the car and returned it to him. She was out however much she paid for it. Id have to ask him if he tried going through his insurance. If the police label it stolen and give you a report, that should be enough to file a claim. I know in homeowners insurance they will not pay out for theft (or vandalism) unless you have a police report.


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[98 svt]

Subbing to hear the story.

 

[BlckBox04]

this is why I hate dealing with people unless it’s straight cash or paypal

 

[roy_1031]

this is why I hate dealing with people unless it’s straight cash or paypal

As stated above, you can’t always trust straight cash. The counterfeit money nowadays is hard to tell apart from the real deal. I’ve also heard horror stories about PayPal.


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[2003RedfireVert]

This is why I sold our recent car to Carvana. I don’t trust anyone anymore. If they aren’t a friend or family member then I don’t want to deal with them.

 

[96dreamer]

@02Toner any thoughts?

 

[Steve@TF]

As stated above, you can’t always trust straight cash. The counterfeit money nowadays is hard to tell apart from the real deal. I’ve also heard horror stories about PayPal.


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What i did when i sold my cobra, for cash, we went to my bank and i had the teller count/check all the cash in front of us both. We then sat on a couch in the banks lobby and did the paperwork. Anyone unwilling to do something like this is raising red flags.


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[Tezz500]

So if someone buys a car using fraudulent means - counterfeit cash, bogus check, etc. Is that covered by comprehensive insurance as vehicle theft?

So buyer gives you $7k in cash, you deposit it and a few days later the bank says it was $5k counterfeit or you get a bogus money order that 3 days later the back calls you about. Can you report it as stolen, do the police report and file a claim?

I have a machine that counts cash and determines if something counterfeit.

I also require anyone purchasing a vehicle from me to meet me at my bank and have the transaction completed there.

Any balking at this is a HUGE redflag.

 

[VegasMichael]

I have a machine that counts cash and determines if something counterfeit.

I also require anyone purchasing a vehicle from me to meet me at my bank and have the transaction completed there.

Any balking at this is a HUGE redflag.

That's what I did when I sold my Shelby. Met at the bank and the teller did a wire transfer. Had her print out my balance, checked it, and then signed over the title and gave the buyer the keys. Easy peasy.

 

[02Toner]

@02Toner any thoughts?

Oh boy... with firsthand knowledge I can tell you my comprehensive coverage just paid out fair market value for a nearly identical situation. I just 'sold' my SRT8 Cherokee and the cash was fake (met at a bank, checked the money, it's quite the story). None the less, it was about a month long investigation process from insurance with them calling the bank, witnesses, the detective and everyone involved, but Progressive came through and I'm pleased with the way they handled the situation.

 

[gimmie11s]

Do the counterfeit pens not catch this new stuff?

I have a few I keep on hand for larger cash deals.... has not backfired on me yet and I mark every single bill then watch the buyers reaction as I do it.

 

[DSG2003Mach1]

Do the counterfeit pens not catch this new stuff?

I have a few I keep on hand for larger cash deals.... has not backfired on me yet and I mark every single bill then watch the buyers reaction as I do it.

I was doing this as well, the issue is when bills are washed - those pens check the paper, not the ink. If you take any real bill, wash it and re-print that pen will show it's a good bill. No idea how they handle the little strip inside the bill or if it's just that they wash a $20 and make it a $100 people see the strip is there without actually reading it

 

[RedRocketMike]

Saw my first $100 that was really a $20 back in 2010.

 

[Kevins89notch]

As stated above, you can’t always trust straight cash.

That's why if I'm buying a car, or selling one, I'll be going to the bank to withdraw the money and hand it over to the buyer, or going with the buyer to their bank to watch them withdraw it. It's a safe place, and there's zero chance of fraud (unless a fake title, zin swap, etc... but at least the cash is legit).