Editor's note: The following is the second of a two-part story on how people are falling prey to scammers in a variety of ways.

Several local residents have become victims of scams after they were sent counterfeit checks to cash, said Lampasas Assistant Police Chief Sammy Bailey. "And they have lost thousands of dollars."

Ms. Bailey offered this advice to consumers when buying or selling online or through the mail:

• Deal locally with people you know and trust. "Follow this simple rule, and 99 percent of the time you will avoid scams."

• Don't buy something unseen.

• Never wire funds to a distant buyer via Western Union or any other carrier.

• Be wary if the other party wants to use an escrow service such as BidPay, Squaretrade or even Pay Pal.

• Never give out personal or financial information.

• Beware of the scams via email from Nigeria and other countries. "In those, they often send you more than your selling price if you accept their check or money order."

• Avoid over-complicated payment and shipping processes that try to trick sellers into shipping the item for sale first and then paying later.

"If the buyer or seller won't agree to meet with you in person, there's probably a good chance this is a scam," said the assistant chief.

Ms. Bailey noted that the online buying and selling Web site Craigslist is not involved in any transactions. "It does not handle payments, nor guarantee transactions. It does not provide escrow services or offer 'buyer protection' or 'seller certification.' "

The best defense from a fraudulent scheme is education, said Ms. Bailey. "Even if you have been scammed already, it's not too late to arm yourself against its happening again. When people know how to spot a scam, they can stop short before they lose their money."

Anyone who suspects fraud or scam attempts is encouraged to contact the Federal Trade Commission's toll-free hotline at (877) 382-4357 or fill out an online complaint form at www.ftc.gov.

To contact the Internet Fraud Complaint Center, visit the Web site www.ic3.gov.

"My biggest piece of advice is to trust your instincts," the law official said. "If it sounds too good to be true, it is."