Overpayment scams, also known as check overpayment scams, are a type of financial fraud that involves tricking individuals into accepting and depositing a check for more than the agreed-upon price of goods or services.
These scams often involve the use of fake or altered checks and can be financially devastating for victims who may be left with insufficient funds to cover the difference once the check is discovered to be fraudulent. It’s important for individuals and businesses to be aware of overpayment scams and to take steps to protect themselves from falling victim to these scams.
Examples of an overpayment scam
Mystery shopper overpayment scam
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One common example of an overpayment scam is the “mystery shopper” scam, where individuals are recruited to act as mystery shoppers and are sent a check as payment.
The scammer issues a check for an amount that exceeds the agreed-upon fee and requests the victim to wire the difference back to them or purchase gift cards or other easily resold items with the excess funds. Once the victim deposits the check and sends the excess funds, the check bounces, leaving the victim with insufficient funds to cover the difference.
Rental scam overpayment scam
Another example of an overpayment scam is the “rental scam,” where individuals who are advertising rental properties may receive a check for more than the agreed upon rental price. The scammer may claim that the excess funds are for security deposits or other fees, and request that the victim wire the difference back to them. Once the check bounces, the victim is left with insufficient funds to cover the difference.
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Telltale signs and red flags of an overpayment scam
When identifying overpayment scams, individuals and businesses should be aware of certain indicators. Firstly, a red flag to look out for is if the check received is for an amount that is notably larger than the agreed-upon price of goods or services. Additionally, it is crucial to exercise caution when dealing with unexpected or unusual payments. Furthermore, it is essential to verify the authenticity of any check before accepting or depositing it into a bank account.
Asking for money back using gift cards
Another warning sign is if the scammer requests that the victim wire the excess funds back to them or use the funds to purchase gift cards or other easily resold items. This may be an indication that the check is fraudulent and that the scammer is attempting to cover their tracks.
In order to protect themselves from overpayment scams, individuals and businesses should take the following precautions:
- Be cautious of any unexpected or unusual payments, and verify the legitimacy of any check before accepting it or depositing it into a bank account.
- Do not wire funds or purchase gift cards or other easily resold items on behalf of a payer.
- Consider requiring payment via a secure method, such as a credit card or electronic payment system, rather than accepting checks.
- If you suspect that you have received a fraudulent check, report the incident to the authorities and your bank as soon as possible.
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Be cautious of unexpected or unusual payments and verify the legitimacy of any check before accepting it or depositing it into a bank account.
Overpayment Scam Blacklist
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FAQ
Overpayment scams, also known as check overpayment scams, are a type of financial fraud that involves tricking individuals into accepting and depositing a check for more than the agreed upon price of goods or services. These scams often involve the use of fake or altered checks, and can be financially devastating for victims who may be left with insufficient funds to cover the difference once the check is discovered to be fraudulent.
Overpayment scams typically involve the scammer sending a check for an amount that is significantly higher than the agreed upon price of goods or services. The scammer may request that the victim wire the difference back to them or use the excess funds to purchase gift cards or other items that can be easily resold. Once the victim deposits the check and sends the excess funds, the check bounces and the victim is left with insufficient funds to cover the difference.
Some common examples of overpayment scams include:
- Mystery shopper scams: These scams involve individuals being recruited to act as mystery shoppers and being sent a check as payment. The check is for an amount that is significantly higher than the agreed upon fee, and the scammer may request that the victim wire the difference back to them or use the excess funds to purchase gift cards or other items that can be easily resold.
- Rental scams: These scams involve individuals who are advertising rental properties receiving a check for more than the agreed upon rental price. The scammer may claim that the excess funds are for security deposits or other fees, and request that the victim wire the difference back to them.
To protect yourself from overpayment scams, consider taking the following precautions:
- Be cautious of any unexpected or unusual payments, and verify the legitimacy of any check before accepting it or depositing it into a bank account.
- Do not wire funds or purchase gift cards or other easily resold items on behalf of a payer.
- Consider requiring payment via a secure method, such as a credit card or electronic payment system, rather than accepting checks.
- If you suspect that you have received a fraudulent check, report the incident to the authorities and your bank as soon as possible.
If you suspect that you have received a fraudulent check, it’s important to take immediate action to protect yourself and your finances. Consider the following steps:
- Do not deposit the check or wire any funds.
- Contact your bank to report the incident and to verify the legitimacy of the check.
- Report the incident to the authorities, including the Federal Trade Commission (FTC) and the Internet Crime Complaint Center (IC3).
- Change any passwords or login information that may have been compromised.
Attention: Consumers who have been contacted by overpayment scammers could have had their personal information breached. TotalScam!™ highly recommends that consumers whose information has been breached obtain an identity theft protection service immediately.
There are several companies that offer identity theft protection in the US. One of the most inexpensive options we were able to find is the protection offered by LifeLock. You can start your protection here.
Disclaimer: The information and opinions contained on this site are not endorsed by LifeLock. TotalScam!™ receives compensation from LifeLock. This helps support our scam prevention efforts.
Our investigations into Common Scams of 2024
