This type of scam occurs when you are selling an item on an online website, for example eBay or Amazon and a person responds to your advertisement on the item that you are selling that he/she would like to purchase the item. These people usually respond to expensive items that are hard to sell, for example used computer hardware and prey on the seller's anxiousness to get the item sold quickly. After the item is shipped to the scammer's address the address will usually be a fake address and that paypal (the online transaction system) will have deducted the costs out of your own account and both your money and the item will be gone.
You can prevent these scams by just doing a simple background check on the buyer, for example phoning the seller directly about his purchase or checking if the address is real.
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