Overpayment Scam
A fraud where a buyer sends more than the agreed amount and asks the seller to refund the difference, before the original payment is reversed or revealed as fraudulent.
Also known as: overpayment fraud, excess payment scam
Last reviewed: 10 June 2026
In an overpayment scam, the fraudster poses as a buyer and 'pays' more than the asking price — often via cheque, money order, or ACH transfer. They then contact the seller with a story to explain the excess (wrong amount on a company cheque, for example) and ask them to wire or send back the difference immediately.
The original payment is fraudulent — a forged cheque, a stolen card transaction, or a reversible electronic transfer. By the time it bounces or is reversed, the seller has already sent real money back and may also have shipped goods. The seller loses both.
Common targets are private sellers on classified ad sites, freelancers, and landlords. Red flags include overpayment without a logical reason, pressure to refund quickly, and insistence on a different payment method for the refund (wire, gift card, cryptocurrency) than for the original payment.
Examples
- A car seller receives a bank draft for $2,000 more than the asking price and is asked to wire back the overage. The draft later bounces and the seller is out the wired funds plus the car.