Overpayment scams involve a scammer sending more money than needed for a transaction, then requesting the "excess" back. The twist? The initial payment was either fake or obtained fraudulently, leaving the victim out of pocket twice.
Initial Setup
Fake Purchase: The scam begins with the scammer posing as a buyer for a product you're selling, often through platforms like eBay, Craigslist, or even direct artist commissions. They agree on a price and decide to pay upfront.
Exaggerated Payment: The scammer sends you payment that is significantly higher than the agreed-upon amount. This could be through a check, wire transfer, or even a fraudulent transaction using stolen credit card details.
The Overpayment
Fake Check: Scammers might use checks that look legitimate but are fake or have been stopped. These checks might initially clear, giving the victim a false sense of security.
Stolen Credit Card: Alternatively, they might use stolen credit card information to make a purchase or transfer, which can take time for the bank or service provider to notice and reverse.
Request for Refund
Convincing Story: After sending the overpayment, the scammer contacts you with an excuse for the overpayment (e.g., a typo, conversion rate error, etc.). They request you to refund the difference, often in a way that's hard to trace like wire transfers, gift cards, or direct bank transfers.
Urgency: They create urgency, suggesting you send the money back immediately, sometimes even offering to cover any fees associated with the transaction to make it seem more legitimate.
The Fallout
Money Recovered: Once you've sent the excess back, the real transaction (if it was via a stolen card) gets reversed by the bank or payment service, or the check bounces. This leaves you having paid out of your own pocket the amount of the "refund" you sent.
Double Loss: Not only do you lose the amount you refunded, but you also lose the goods or services if you've already sent them.
Why It Works
Trust: People naturally trust that payment has been made when their bank account shows the deposit.
Helpfulness: Many want to be helpful or courteous in correcting an apparent mistake.
Ignorance of Banking: Not everyone understands how long it can take for banks to notice and reverse fraudulent transactions.
Prevention Tips
Verify Funds: Wait for checks to clear completely, which can take several business days, not just the initial deposit. For credit card transactions, ensure you understand the chargeback risks.
Avoid Refunding Excess: Never send back money until you're 100% sure the payment is legitimate and has been credited to your account permanently.
Use Escrow or Secure Platforms: When possible, use platforms that hold payment until both parties confirm satisfaction with the transaction.
Be Wary: If someone overpays significantly, it's a huge red flag. Verify their identity and the transaction's legitimacy through direct contact or official channels of the payment method used.
Proceed with caution when dealing with transactions that seem too good (or in this case, too easy) to be true. Don't allow the thought of a payout cloud your judgement.