Overpayment scams have become a common tactic that scammers use. The appeal of receiving a refund, even if you don't recall the purchase, can feel like getting free money. The scammer often poses as a legitimate business or agency, trying to do the right thing by offering you a refund. However, like the purchases being non-existent, these refunds are also non-existent.
Scammers will begin their refund transaction, but during their fictitious transaction they will claim they have overpaid you. These overpayments can come to their targets a few different ways.
- Remote Connection - Scammers will claim to need you to log into your banking so they can properly process the refund. While you are sharing your screen, you will log in and the scammer will manipulate the HTML code on the site to make it appear as though an overpayment has gone through.
- Check by Mail - Scammers will send fraudulent checks in the mail, hoping their targets will deposit them. These checks will often come with a requirement of contacting the scammer to notify them of receipt of the check. When the target contacts the scammer they will insist the refunded check had a typo and the amount was incorrect.
- Payment App - Scammers will piggy back their scams, by using the payment information from a prior scam victim to pay their new target. Once the payment goes through, they will request the money be sent back - as it was an accident and they did not intend to send the money to you.
Once the overpayment scam has set this trap for its target, the scammer will insist on being repaid immediately. They will claim that they are unable to reverse the transaction and will need the money repaid in gift cards, pre-paid credit cards, or by wire transfer. If it was through a Payment App, they often will expect the person to simply send them the same amount of money - not knowing that the initial amount "mistakenly transferred" to them was fraudulent.
In order to avoid these scams, be aware of any offered refunds. If it is for an unfamiliar purchase, do not engage with the offer. Do not return any calls or click any links in emails claiming you can get a refund. Legitimate businesses are very careful with their transactions and will never over-refund you.
- If there is a request to repay the refund via another method - do not continue with the transaction. Instead contact your financial institution to notify them of the fraud attempt so they can ensure your account is secure.
- Do not cash any checks that are mailed to you from unfamiliar sources and if you do decide to risk the deposit, go to your financial institution and notify them that you are unsure if the check is legitimate or not. They can assist with verification.
- If someone sends you a check and want you to refund a portion of it, instead send the check back and ask them to write it in the correct amount. Usually, you'll never hear from then again.
- If you receive any payments via a payment app from an unfamiliar person, do not send the funding back through the app or any other payment method. Instead, leave the payment alone and contact the support team for the specific app and notify them of a payment you have received from a stranger.
While the temptation to receive money can be difficult to resist, if you believe it to be free money - know that it is going to end up costing you much more in the end.