Overpayment / Refund-Excess Scam

Overpayment scams typically target private sellers on classified-ad or peer-to-peer marketplace platforms. A 'buyer' sends a payment larger than the agreed price—claiming a mistake or using a payment made on behalf of a third party—and asks the seller to refund the excess amount via a separate channel (wire transfer, gift cards, or a payment app). The original payment is made by cheque, a fraudulent bank transfer, or a payment instrument that will later be reversed.

When the original payment bounces or is reversed days later, the seller has already sent the 'refund' from their own funds and loses both the money and, often, the item if they shipped it. The same pattern appears in employment scams (overpaid salary cheques), rental fraud, and online ticket sales.

Sellers should never refund any amount before a payment has fully cleared in their own bank account—not just appeared as a pending deposit. Legitimate buyers do not need to overpay and request partial refunds. Payments that arrive via physical cheque or unclear instruments should be treated with particular caution.