A US couple who offered to pay mainly by letter of credit (L/C) for a vintage car they saw advertised on the auction site eBay were conned outof tens of thousands of US dollars by the bogus seller who said that only cash up front would do for him.

The story underlines the notion that the L/C can provide much needed security for both buyers and sellers of expensive items in Internet-facilitated transactions.

Deal offline

Car enthusiasts Joan and Larry White located a 1940 Ford Deluxe Convertible while browsing eBay Motors in December 2007.

Larry White suggested to the seller they take their deal offline because he was concerned about scams on eBay he said he had heard about.

L/C rejected

The seller, who called himself BobYousef, was happy to take the deal offline and in the days that followed, Joan White said she suggested she send the seller US$1,000 cash and an L/C for the balance.

The man who called himself Yousef rejected this idea. He said lots of other people were interested in the car and the couple would have to act fast if they wanted it.

Wire transfer

Finally the Whites were persuaded to wire the sum of US$31,000 to an account maintained by a company called Saadi Investments at the Bank of Montreal in Canada.

The Whites received confirmation from Yousef that he had received the money, but communications with the supposed seller ended at that point, leaving the couple without the car they thought they were buying and the cash they sent to pay for it.

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