Fake Check Overpayment Scam

The fake check overpayment scam exploits the processing delay between a cheque being deposited and it being fully cleared. A fraudster contacts a victim — typically through a classified ad, online sale, job offer, or lottery notification — and sends a cheque for an amount larger than what is owed. The excuse for the overpayment varies: a billing error, the need to include money for shipping, or funds for buying equipment for a remote job.

The victim is instructed to deposit the cheque and immediately wire or send the 'extra' amount back. Because most banks provide provisional credit within one to two business days, the account briefly appears to have the funds. The victim sends money — often by wire transfer, gift card, or cryptocurrency — and days later the bank reverses the deposit once the cheque is identified as counterfeit. The victim is responsible for the full amount sent.

This scam is also called the 'overpayment scam' or 'advance payment scam'. The principle applies equally to fake electronic payments that appear to clear but are later reversed. No legitimate buyer, employer, or prize organiser will overpay and ask for a refund — that is the defining hallmark of the scam.