Overpayment scams are fairly common, and for the unaware, they can be difficult to spot. Let’s take a look at these scams and what you need to know to avoid falling victim to these ruses.
What is an overpayment scam?
In an overpayment scam, fraudsters target someone who’s selling a large item online, such as a car. The scammer will reach out to the seller and offer to buy their item for more than the asking price. Then, they’ll send the seller payment in the mail.
At this point, the seller is thrilled. But, when the check comes, it brings with it a surprise – they’ve been overpaid. Soon after, the alleged buyer contacts the seller, asking them to refund the surplus. The seller will comply, not wanting to keep money that isn’t theirs. The next thing they know, the original check hasn’t cleared and they realize they’ve been scammed. Now they haven’t been paid for the purchase they believed the check writer was buying, and they’ve also lost the money they’ve sent to the scammer.
Red flags
When selling an item on an online platform, look out for these red flags, which can alert you to a possible overpayment scam:
How to avoid overpayment scams
If you’ve been targeted
If you believe you’ve been targeted by an overpayment scam, there are steps you can take to mitigate the damage.
First, report the scam to your financial institution and the platform where you’re selling from. Next, alert the FTC at ftc.gov so they can do their part in catching the criminals. Finally, let your local law enforcement agencies know about the scam.
Use this guide to avoid falling victim to an overpayment scam.