The Overpayment Scam is a deceptive practice where a supposed buyer intentionally overpays for an item using a fraudulent check or money order. The buyer then requests the seller to refund the excess amount.
The scam hinges on the time delay between the deposit of the fraudulent payment and its eventual bounce or rejection by the bank.
How Does Overpayment Scam Happen?
- Initial Contact: The scam usually starts with the scammer expressing interest in an item listed on Facebook Marketplace.
- Overpayment Excuse: After agreeing to purchase, the scammer sends a check or money order for an amount significantly higher than the agreed price. They might claim this was a mistake or give a plausible reason, like added shipping costs or a clerical error.
- Urgent Refund Request: The scammer then quickly requests the seller to refund the overpaid amount, often citing urgency due to some personal or financial emergency.
- Check Bounces: By the time the seller’s bank processes and eventually rejects the fraudulent check, the scammer has already received the refund from the seller. The seller is then left with no payment for their item and a financial loss equal to the refunded amount.
Why Overpayment Scam is Effective
- Trust in Checks: Many people still trust checks as a legitimate form of payment.
- Lack of Awareness: Sellers might not be aware that it can take several days for a check to clear or bounce.
- Urgency and Pressure: The scammer’s sense of urgency and pressure can make the seller act quickly without due diligence.
How to Avoid Overpayment Scams
- Be Wary of Overpayments: Always be suspicious of buyers who overpay and understand that legitimate buyers would rarely make such mistakes.
- Verify the Payment: Wait for the check to clear and be confirmed by your bank before dispatching the item or refunding any amount. This process can take several days.
- Use Secure Payment Methods: Encourage payments through secure, traceable methods that Facebook Marketplace recommends, and avoid checks if possible.
- Refuse to Refund Overpayments: Politely decline to refund overpayments and suggest the buyer cancels the original payment for a correct amount.
What to Do If You Encounter an Overpayment Scam
- Do not deposit the check and cease communication with the buyer.
- Report the scam attempt to Facebook Marketplace.
- Inform your bank if you have already deposited the check.
- Report the incident to local authorities, especially if you have lost money.
- Share your experience with your network to raise awareness and prevent others from falling victim to similar scams.
