An overpayment scam is a fraudulent scheme where scammers trick individuals or businesses into accepting payments that exceed the owed amount, typically as part of a purchase or service transaction. The scam usually involves the scammer sending a counterfeit check, money order, or payment via an online platform. After the payment is received, the scammer will claim the overpayment was a mistake and request that the extra money be refunded or sent to a third party.
Once the refund has been sent, the original payment will bounce or be flagged as fraudulent, leaving the victim responsible for the full amount of the so-called overpayment. This scam is commonly seen in transactions involving goods, services, or rentals, particularly with online sellers or small businesses.
The consequences of falling for an overpayment scam include financial loss and potential damage to your payment accounts or business reputation. To avoid overpayment scams, always verify the legitimacy of a payment before refunding any amount and be wary of customers who send excessive payments or request unusual arrangements. It's important to wait until a payment fully clears before processing any refunds.