Gumtree/Paypal Scam

Okay, so today i found out that i have been scammed, big time.

It started in August when i responded to a gumtree ad looking for people to sell items on their behalf, in exchance for a 7% comission. After a few emails, i decided it would be a good money maker. They sent me details of a Rolex Watch along with photo's which i didn't question, i posted on ebay and got excited as the bids increased.

I got questions from bidders asking about seeing the watch, the seller said she didn't want anyone coming to her home as bad thing happen when people visit houses, and she didn't feel safe as it happened to her sister recently (she lived in London), I understood, as i have read many stories of people getting robbed etc.

One bidder was fine with this and agreed to but the watch for £7000 via paypal, and i said i would send through a tracking number once i recieved it.

The payment was recieved with no issues, i withdrew and sent the seller £6211.60 after my comission and paypal fees.

I continued communication with the buyer and i had already explained that i was acting as a middleman, and that i didnt have the watch (this was explained prior to the winning bid), however, communication with the seller became slow, but i recieved an email saying she had internet issues but would send the tracking number when she got home as she didnt have it at work.

The buyer became increasingly irate, which is understandable but i passed on all and any information that i had.

After a couple of days, all communication stopped, with buyer and seller. I assumed that the watch had indeed been recieved. Happy ending.

NOT

Today my partner called me while i was at university, telling me that I had a letter stating that i owed paypal £7000, i was very confused, and checked my emails and paypal account.

I hadnt checked my emails before this as i only use that particular address for paypal, and since i hadnt bought or sold anything since, i had no reason to check.

So it turns out taht the buyer opened a claim etc and he was reimbursed the £7000.

I spoke to the debt collectors today, asked them to hold the procedings, which they were more than helpful with. I called the police and Action Fraud who in turn helped me file a fraud report and get a police reference number, i then contacted paypal and explained, in detail what had happened, I offered to pay back the money i recieved as commision which is only fair, i spent it, so i should repay it.

It has been sent to their fraud department which i am now awaiting a reply from.

In addition to this, i paid £100 today, my last penny in a bid to show paypal that i fully intend on getting this resolved.

thats my story.

has anyone seen, heard or been stung with anything similar to this? I have never heard nor seen this scam before, i have no idea what the woutcome will be. worst case scenario is that they ask me to pay the full amount and i have to become bankrupt.

any advice or general comments are appreciated.

Thanks

Welcome to scamwarners. I am sorry for the reason that brought you here.

Unfortunately, I can't give you any good news here.

The scammer never had any intention of delivering an item--he was just looking for people to put up his fake listings so that he could collect the money and remain hidden. The scammer can't create an account of his own--he would need to produce a credit card or bank account, which would make him too traceable. Plus, new accounts are monitored closely, and payment is often held longer to ensure the items are delivered, so the scammer can't just pick up the money and disappear, as the buyer will report the item not received before the scammer gets his hands on the money. So instead the scammer places ads, and recruits people (preferably with existing accounts.) This is a known scam, and it is pretty common.

The requirements for eBay sellers are clear--as the seller, you are responsible for making sure that the buyer receives the item. So by agreeing to place ads, you took on the liability for ensuring that customers received product, and for refunding the money when product wasn't received. Paypal is only responsible for taking it from your account and returning it to the buyer. If you withdrew it, then you have to pay it back in. You can hope that paypal will be lenient with you, but remember that they are a for-profit business. Being lenient with you means taking a loss on a transaction when they did nothing wrong. They have no reason to settle for the "commission." From their perspective, you made a conscious decision to violate your agreement by selling an item you don't have. Then you went on to receive and withdraw money to which you were not entitled, and now you don't want to pay it back. The fact that you forwarded that money to someone else means nothing to them, because you are the one who has a business arrangement with them. They are not part of any arrangement you had with the scammer.

From a legal perspective, they can (and most likely will) go after you for all of the money. You would be expected to pay them, but have every right to try to go after the scammer and sue for the money. Unfortunately, the scammer is almost certainly hiding behind fake names and addresses, so you will find you have nobody to collect from.