Real Refund vs Refund / Overpayment Scam
How to recognise a legitimate refund from a scam that tricks you into sending money back after a fake overpayment.
Last reviewed: 1 June 2026
Genuine refunds are quiet events. You asked for one, it goes back the way it came, and nobody rings you about it afterwards. Overpayment scams take that ordinary process and add a person in difficulty. Money you did not expect appears in your balance, and someone explains they typed an extra digit, or that their employer will take it from their wages, and asks you to send the difference back. Most people want to be fair, and the balance on screen appears to prove the money is really there. It is not. Cheques and some transfers can be reversed days after they look settled, and the return is almost always requested by a route no real refund would ever use. The distinction that matters most is timing: you are being asked to send real money before the incoming payment is final.
Side-by-side comparison
| Genuine refund | Overpayment / refund scam | |
|---|---|---|
| Initiation | You requested the refund through an official complaints or returns process | An unexpected windfall arrives — a cheque, transfer, or PayPal payment you did not expect |
| Payment method | Refund goes back to your original payment method (card, bank, PayPal) | You are asked to return money via bank transfer, gift card, or cryptocurrency — not the original route |
| Clearing time | Retailer confirms the refund is processed before asking anything of you | Urges you to send the 'overpayment' back before the incoming payment has cleared |
| Reason given | Clear reference to your original transaction, order number, or dispute | Vague or invented reason — billing error, prize distribution, or remote computer support 'overpayment' |
| Urgency | Normal processing time; no pressure to act within the hour | Insists you act immediately before the window closes or the account is frozen |
| Contact channel | Comes through the official account portal or customer-service email you initiated | Arrives via unsolicited text, call, or message from someone you have not previously contacted |
Common red flags
- Asked to return an 'overpayment' before it has fully cleared
- Requested to send money back via gift cards, crypto, or wire transfer
- Refund is larger than you expected for no clear reason
- Urgency about returning money 'today' or 'within the hour'
- Contact comes from a number or email you do not recognise
Verification steps
- Wait for the incoming payment to fully clear — several business days for cheques and some bank transfers
- Log in to the official retailer or service account to check your refund status
- Contact the company directly using contact details from their official website
- Ask your bank whether the received funds are fully cleared before taking any action
What not to do
- Do not send money back via a different method than the original payment
- Do not act on urgency — a genuine overpayment will remain visible in your account
- Do not assume a payment has cleared because it shows in your balance; cheques and some transfers can be reversed
A safe response
Do not send anything back yet, and do not let the other person's distress set the pace. Tell them once, plainly, that you will return the funds when your bank confirms the payment is final, then stop replying to the pressure. Ring your bank on the number on the back of your card and ask specifically whether the money has fully cleared and can still be reversed. If a company is involved, contact it through its official website rather than any number you were given. If you have already sent money, especially by transfer, gift card or cryptocurrency, tell your bank straight away and report it to your national fraud service. Keep the messages.
Frequently asked questions
The sender is threatening to report me for theft if I do not return the money today. What should I do?
Threats like that are pressure rather than law. Anyone genuinely owed money can let their bank reverse a mistaken payment, which is the normal route and needs nothing from you. Say once that you will act when your bank confirms the funds are final, then stop responding and keep the messages. If you are worried about where you stand, speak to your bank or a free consumer advice service rather than deciding inside the conversation with the person pressing you.
Can I keep an overpayment sent to me by mistake?
Generally no — even genuine overpayments must be returned to the sender. The difference is that a real sender will wait for you to do so through normal banking channels, not demand you send gift cards immediately.
What if my bank says the cheque cleared?
Cheques can appear to clear and still be reversed days later if they are counterfeit. Your bank should tell you when a cheque is final — ask explicitly before acting on any funds.