Overpayment Fraud

Overpayment fraud follows a reliable pattern: a 'buyer' or 'client' sends a cheque, bank transfer, or money order that is deliberately higher than the agreed amount, then contacts the seller with a plausible excuse — a 'mistake by my assistant', 'the extra is for shipping costs' — and requests that the surplus be refunded immediately, usually via wire transfer or gift cards.

The original payment is fraudulent — a counterfeit cheque, a stolen card payment, or a reversible bank transfer. It may clear initially (banks often make funds available before verification), but days or weeks later the payment is reversed. The victim has already sent back the 'surplus' with their own real money and is left out of pocket for the full refund amount.

The scam is common in classified ad sales, online marketplaces, freelance work platforms, and rental listings. Defence: never process a refund until a payment has fully cleared and the funds are irrevocably in your account — which for cheques can take several weeks. Be especially suspicious if the overpayment excuse involves an urgent, pressure-driven request for a quick refund.