How Do Overpayment Scams Work?The Buyer Says They Accidentally Paid Too Much. Did They?
How Overpayment Scams Work: Common Tactics & Workflow
Picture this: a customer contacts you, claiming they “accidentally” wrote a check for too much or entered the wrong amount.
They ask you to refund the difference; being a good seller, you oblige. Although it seems like an innocuous error, you’re really being played. In this chapter, I’ll detail the mechanics of overpayment scams to show you how fraudsters steal your revenue under the guise of a seemingly harmless mistake.
Overpayment Scams
What should you do when a customer wants to pay more than your listed price for goods or services? This question might seem to have a simple answer, but there's a reason why overpayment scams are a favorite method for fraudsters. This guide explores everything you need to know on the topic: what overpayment scams are, why they’re a bad deal, and how best to fight them.
How Do Overpayment Scams Work?
A pretty typical overpayment scam might work something like this:
- You list a product or service for sale online. For example, it may be a used car, furniture set, or costly electronic device.
- You receive a DM or email offering to pay you more for the item than your listed price. You’re told this overage is to cover shipping, handling, or some other charge.
- The buyer sends you a digital payment, or a check or money order. The buyer claim that the overage is to pay for shipping or handling and must be made out to a third party or secondary account.
- You deposit their check or money order or send the additional funds electronically, and send the goods along to the buyer, as per their instructions.
- Your bank or processor informs you that the original payment method was fraudulent. You don’t get to keep the funds, and the fraudster has disappeared with your goods.
Why Do Sellers Fall Victim to Overpayment Scams?
Now, the scheme I outlined above probably seems sketchy to most of us right off the bat. However, depending on the context of the sale, overpayment scams might not be so easy to spot.
There are a few factors to consider here. For example, the scammer may:
Overpayment scams are not the same as return fraud, but the tactics are similar.
The main difference between overpayment fraud and return fraud is the methodology. Overpayment scammers may be able to steal the funds and items from the original transaction like most return fraudsters. However, they add on that additional repayment scam at the end. In essence, they’re victimizing you twice.
