High riskBank & Payment Scams

Money Order Scam

In this scam, you are paid with a counterfeit money order, or one for more than agreed with a request to refund the difference; the money order is fake or reversed, leaving you out of pocket for any funds you released.

Quick verdict

Risk level
High risk
Scam type
Fake instrument / overpayment
Main red flag
Payment by money order, especially one that overpays and asks for change back.
What to do first
Do not give goods or refunds until the money order is fully verified and cleared.

What this scam usually looks like

In this scam, you are paid with a counterfeit money order, or one for more than agreed with a request to refund the difference; the money order is fake or reversed, leaving you out of pocket for any funds you released.

Example message pattern

Example pattern — not a real report
Example pattern: 'I've sent a money order for $1,200 for the $800 item. Please ship it and send the extra $400 back to my agent.'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

Red flags to watch for

  • Payment by money order from someone you do not know
  • An amount higher than agreed, with a refund requested
  • Pressure to ship or refund quickly
  • A request to send change to a third party
  • Reluctance to use traceable, verifiable payment

What to do

  • Verify a money order with the issuer before releasing goods or change
  • Do not refund overpayments; wait until funds are confirmed
  • Prefer traceable payment that clears before handover
  • Report suspicious money orders to your bank

If you already clicked or replied

  • If you shipped goods or sent change, contact your bank immediately
  • Expect a fake money order to be reversed, leaving you liable
  • Keep the money order and all messages as evidence
  • Report the scam to your bank and authorities

What not to do

  • Do not release goods or change before a money order clears
  • Do not refund overpayments to a third party
  • Do not assume a money order is as good as cash

Similar scams

High risk Bank & Payment

Fake Cheque Scam

A buyer, employer, or prize giver sends a cheque for more than you are owed and asks you to deposit it and send back the difference. The cheque later bounces, the bank reclaims the full amount, and you are left owing the money you sent on.
High risk Bank & Payment

Overpayment Scam

A buyer, employer, or 'client' sends you a payment or cheque for more than they owe, then asks you to send the extra back. The original payment is fake or is later reversed, leaving you out of pocket for the refund you sent.
Medium risk Bank & Payment

Accidental Transfer Scam

In this scam, money arrives in your account 'by mistake' and the sender urgently asks you to return it; the original funds were stolen or are later reversed, so any money you send back comes from your own balance.

Frequently asked questions

Are money orders safe to accept?
They can be counterfeit or altered. Verify with the issuer and ensure funds are fully cleared before releasing goods or any change.
Why the overpayment and refund request?
It is a classic overpayment trick. The money order is fake or reversed, so any change you send comes from your own money.
I already sent the change. What now?
Contact your bank immediately, keep all evidence, and report it; the money order will likely be reversed.
What payment is safer?
Use traceable methods that fully clear before you hand over goods, and avoid accepting overpayments with refund requests.

Last reviewed: June 2026

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.