From the Off-Campus Resource Centre:
As reported in local newspapers and radio recently, there is an ongoing scam which targets landlords of student rentals. You may receive an email or phone call from someone overseas, saying they or their son/daughter will be attending McMaster University.
They will then send you an international money order or cashier’s cheque, which turns out to be FAKE, for an amount in excess of your rental amount. In turn, they will ask you to send them back the difference in money (usually by wire transfer).
By the time the Canadian bank figures out the money order is fake (typically about 3 weeks), they’re hoping you will have already wired them the money back. DONT’ BE FOOLED.
Unfortunately, you may receive legitimate enquiries [sic] from international students. Be cautious in your dealings; NEVER send any of your good money to them; tell them you’ll settle up with them when they arrive here in Canada. Or, at the very least, wait a month or so to be sure the cheque clears at your bank. If you suspect you have been the target of such a scam, please contact the local police to report the incident.(updated June 2010)
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