Someone sends you more money than expected and asks you to return the difference. Sounds like an honest mistake, right? Wrong. This is one of the oldest tricks in the scammer’s playbook, and it’s costing Americans millions every year. The overpayment scam preys on your natural instinct to be helpful and honest, but that generosity can cost you thousands of dollars.

These scams work because fake checks can look completely real, and banks are required to make funds available quickly. By the time you discover the check is worthless, you’ve already sent your own real money to the criminals. Understanding how this con works can protect you from becoming the next victim.

How the Overpayment Con Really Works

The scam starts innocently enough. You’re selling something online, offering a service, or even just receiving what appears to be a legitimate payment. The “buyer” sends you a check for more than the agreed amount, then contacts you with an apologetic explanation: they made an accounting error, their assistant miscalculated, or they included money for shipping costs by mistake.

They ask you to deposit the check and wire back the excess amount. The check looks authentic, complete with official logos, routing numbers, and professional printing. Your bank accepts the deposit and makes the funds available, so everything seems legitimate. You send back the “overpayment” amount via wire transfer, money order, or gift cards.

Warning: The original check is completely fake. Within days or weeks, your bank discovers the fraud and reverses the deposit. Now you’re responsible for the entire amount of the fake check, plus any fees. The money you sent to the scammer is gone forever, and you’re left owing your bank hundreds or thousands of dollars.

Recognizing the Red Flags Early

Overpayment scammers follow predictable patterns once you know what to look for. They often respond to your online listings with immediate interest and agree to your asking price without negotiation. Their initial contact might come through email or text with oddly formal language or obvious grammar mistakes.

The “overpayment” excuse always sounds plausible but slightly complicated. They might claim they’re traveling internationally, buying multiple items, or dealing with currency conversion issues. They’ll insist the extra money covers shipping, moving costs, or payment to a third party like a pickup service.

Legitimate buyers don’t send extra money by accident. Real customers ask questions about your item, negotiate prices, and arrange simple payment methods. They don’t send cashier’s checks from different states or ask you to handle money transfers for them.

Watch for pressure tactics too. Scammers often create artificial urgency, claiming they need the refund quickly because of travel plans or other commitments. They might offer to let you keep some extra money as a “tip” for your trouble.

Your Legal Rights and Bank Responsibilities

Under federal law, banks must make check deposits available within specific timeframes, but this doesn’t mean the checks are valid. When a check bounces, you’re legally responsible for the full amount, even if you acted in good faith. Banks can charge returned check fees, overdraft fees, and other penalties on top of the original loss.

You have the right to dispute fraudulent transactions, but recovery is difficult once you’ve voluntarily sent money to scammers. Wire transfers and gift card purchases are nearly impossible to reverse. Credit card chargebacks might work if you used a card for part of the transaction, but most overpayment scams specifically avoid credit card payments for this reason.

Document everything if you suspect fraud. Save all communications, take photos of checks before depositing them, and keep records of any money transfers. This documentation helps when filing police reports and insurance claims.

Smart Protection Strategies

Never accept overpayments, regardless of the explanation. Legitimate buyers can send the correct amount or arrange alternative payment methods. If someone insists they can only send a larger check, that’s your signal to walk away from the transaction entirely.

Wait for checks to fully clear before sending any money or merchandise. This process can take weeks, not days. Don’t rely on your bank’s funds availability policy as proof that a check is valid. Even if your bank releases the funds quickly, the check can still bounce later.

Use secure payment methods that offer buyer and seller protection. Services like PayPal, established escrow companies, or meeting in person for cash transactions provide more security than personal checks from strangers. For high-value items, consider requiring bank-verified cashier’s checks or electronic transfers that can’t be reversed.

Taking Action Against Scammers

If you’ve received a suspicious overpayment, don’t deposit the check and don’t send any money. Contact your bank immediately to report the attempted fraud. Many banks have fraud departments that can verify check authenticity before you deposit it.

Report the scam to the Federal Trade Commission and the FBI’s Internet Crime Complaint Center. Include copies of all communications and documentation. Your report helps law enforcement track these criminal networks and warn other potential victims.

If you’ve already fallen victim to an overpayment scam, act quickly. Contact your bank to report the fraud and ask about options for recovering lost funds. File reports with local police and federal agencies. The FTC’s recovery resources provide step-by-step guidance for victims of check fraud.

Trust your instincts when something feels too complicated or too generous. Honest buyers don’t create complex payment scenarios or send extra money “by mistake.” Remember that you have the power to say no to any transaction that doesn’t feel right. It’s better to lose a potential sale than to lose your real money to criminals who count on your good nature to fund their illegal activities.