Fake Cheque Overpayment Scams
How fraudulent buyers send overpayment cheques to sellers, exploit the gap between apparent clearance and actual verification, and collect a refund before the cheque bounces — leaving the seller out of pocket.
Part of: Fake Cheque Scams
Last reviewed: 1 June 2026
Fake cheque overpayment fraud exploits a specific and widely misunderstood property of cheque processing: funds may become visible in your account — and even spendable — before the cheque has actually been verified as genuine. Scammers have built an entire fraud category around this gap. By sending a cheque for more than the agreed amount and asking the seller to return the difference, they extract real money while the original cheque is still in the verification pipeline. Days later, the cheque bounces — and the seller has both lost their goods and forwarded real money to the scammer.
This guide covers how the overpayment cheque pattern plays out, why the clearing-versus-available-funds distinction catches so many people, and the firm rule that eliminates the risk entirely.
How this scam works on cheque/bank deposit
The scam typically begins when a seller lists an item for sale — on Craigslist, Facebook Marketplace, eBay, or a specialist classifieds site. A buyer contacts them, agrees to purchase, and then explains they are sending a cheque but it will be for more than the asking price due to a bookkeeping reason, an extra payment for shipping, or a portion owed to a third party.
The seller receives a convincingly formatted cheque — sometimes drawn on a real bank with a genuine account number that has been altered. The seller deposits it. Within one to two business days, the bank makes the funds available (as per standard policy for deposited cheques). The buyer then urgently requests that the seller forward the 'overpayment' — typically the difference between the cheque amount and the sale price — via wire transfer, Zelle, or money order.
The seller sends the refund. Three to ten business days later, the bank discovers the cheque is fraudulent and reverses the deposit. The seller has received nothing real from the cheque but has forwarded real money to the scammer. They are liable for the reversed amount and may also have already shipped the item.
This pattern is pervasive across online marketplaces and also appears in rental, employment (fake work-from-home salary advance), and lottery fraud contexts.
Common red flags
- A buyer who sends a cheque for significantly more than the agreed amount and asks for a refund of the difference
- Any explanation for why the cheque amount is higher than expected, however plausible it sounds
- Pressure to send the 'overpayment refund' quickly — before the cheque can complete full verification
- Buyer who is willing to pay well above market price for a listed item
- Refund requested via wire transfer, Zelle, money order, or gift cards — methods with no recovery
- Cheque arrives from an unexpected third party rather than the buyer directly
How to protect yourself
- Never send a refund for an overpayment cheque under any circumstances — the standard rule is: if a buyer sends too much, return the entire cheque uncashed and ask for a new one for the correct amount
- Understand that 'available' funds in your account do not mean a cheque has cleared — full verification takes up to ten business days
- Ask your bank explicitly whether a specific deposited cheque has been fully verified before spending or forwarding any portion
- For high-value transactions, prefer payment methods that are genuinely irreversible on the buyer's side: bank-confirmed wire, cash, or verified escrow
- If a buyer insists on paying by cheque and requires a refund of an overpayment, treat this as a scam signal and end the transaction
How to report it
- Report to the FTC at reportfraud.ftc.gov (US) or Action Fraud (UK) — include any cheque images and buyer contact details
- Report to the US Postal Inspection Service at postalinspectors.uspis.gov if the cheque was mailed — cheque fraud by mail is a federal offence
- Report the listing platform where the buyer contacted you
- Contact your bank to report the fraudulent cheque deposit — they can document it and may assist with any refund amount that was forwarded
Frequently asked questions
If the funds appear available in my account, hasn't the cheque cleared?
No. Banks make funds available as a customer service before the cheque is fully verified — this is a standard policy. The actual verification process can take several more days. A cheque can appear to clear, funds can be spent, and the cheque can still be returned as fraudulent, leaving you liable for the full amount. 'Available' does not mean 'verified.'
Who is responsible if I send a refund and the cheque later bounces?
You are. When you deposit a cheque, you take on responsibility for its legitimacy under your bank's terms. If the cheque bounces after you have forwarded a refund, the bank will claw back the deposited amount from your account, and you will have no recovery route against the scammer for the forwarded money.