What is an overpayment scam?
An overpayment scam is a fraud where a buyer sends you a cheque or payment for more than the agreed amount and asks you to return the difference, but the original payment later bounces or is reversed, leaving you out of pocket.
Last reviewed: 10 June 2026
Explanation
Overpayment scams are common in private sales (cars, furniture, pets, freelance work). After you list something for sale, a 'buyer' contacts you, agrees to your price, then sends a payment that is noticeably higher — claiming it was a mistake, a combined payment, or that a friend sent extra. They ask you to forward the difference via bank transfer, gift cards, or wire.
The original payment appears to clear in your account because banks make funds provisionally available before fully verifying them. A cheque may take days or weeks to officially bounce; a bank transfer can be recalled as fraudulent. By the time the reversal happens, the money you forwarded is gone and unrecoverable.
This scam also targets freelancers and remote workers. An employer sends a larger payment than agreed 'by mistake' and asks the worker to return the excess via a different method, often before their own payment fully clears.
The core rule: never spend or return funds from a payment that could still be reversed. Wait for full cleared funds — not provisional availability — before sending anything. If a buyer cannot explain a consistent, correctly sized payment, that is a significant warning sign.
Common red flags
- A buyer sends more than the agreed amount and asks you to return the difference
- Payment is via cheque (especially from overseas), money order, or a method with a reversal window
- They want the 'excess' returned via gift cards, wire transfer, or a different payment method
- Communication has grammatical errors or an overly formal tone inconsistent with local buyers
- They are unwilling to cancel the transaction and send the correct amount instead
- Pressure to act before you check whether the funds have truly cleared
What to do now
- Do not send any money until the original payment has fully cleared — confirm with your bank, not just your online balance
- Suggest the buyer cancel and resend the correct amount — a legitimate buyer will agree
- If you already sent money and the payment bounced, report to your bank and local police
- Remove the listing until you understand what happened
- Report the buyer's contact details to the platform you were selling on
Frequently asked questions
Why does the money appear in my account if the payment is fake?
Banks often make funds provisionally available as a courtesy before verifying a cheque or confirming a wire transfer. This does not mean the payment is real. If the originating payment is reversed or bounced, the bank will claw back those provisional funds.
Can this happen with PayPal or other digital payments?
Yes. Digital payments can also be reversed — through unauthorised transaction disputes, stolen account fraud, or chargeback abuse. The same rule applies: do not return any surplus until you are certain the original payment cannot be reversed.