High riskBank & Payment Scams

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.

Quick verdict

Risk level
High risk
Scam type
Fake payment refund scam
Main red flag
Being paid too much 'by mistake' and asked to refund the difference, often quickly.
What to do first
Do not send any money back until the original payment has fully and permanently cleared, which can take days or longer.

What this scam usually looks like

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.

Example message pattern

Example pattern — not a real report
Example pattern: 'So sorry, my assistant sent $1,200 instead of $900 for the item. Please keep $900 and send the extra $300 back to this account today and I will arrange pickup.'

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

  • A payment or cheque arrives for more than the agreed amount
  • An urgent request to refund the overpaid difference quickly
  • Being asked to send the refund to a different account, person, or by gift card or crypto
  • An excuse like an 'assistant' or 'accounting error' for the overpayment
  • Pressure to refund before your bank confirms the funds have truly cleared

What to do

  • Wait until your bank confirms the payment has permanently cleared before refunding anything
  • Be aware that a payment showing in your balance is not the same as it being final
  • Refuse to send refunds by gift card, crypto, or to a third-party account
  • Report the attempt to the platform involved and to your national anti-fraud centre

If you already clicked or replied

  • If you already sent a refund, contact your bank immediately to report it
  • Ask whether the transfer can be stopped or recalled
  • Keep all messages, receipts, and payment records as evidence
  • Report the scam to the marketplace or platform and to fraud authorities

What not to do

  • Do not refund any overpayment before the original payment is fully cleared
  • Do not send money back by gift card, crypto, or to a different account
  • Do not let urgency rush you into transferring funds

Similar scams

High risk Marketplace

Facebook Marketplace Buyer Email Scam

A fake buyer claims to have paid through an email service and asks you to confirm a fee or send the 'difference' before any real money arrives.
High risk Bank & Payment

Fake E-Transfer Scam

This scam sends a fake e-transfer notification linking to a phishing page that imitates your bank's login to steal your online banking details.
High risk Email

Fake Refund Email Scam

This scam emails that you are owed a refund and asks you to confirm bank or card details, or to accept a refund that is really designed to steal your money.

Frequently asked questions

The money is already in my account, so is it safe to refund?
Not necessarily. Payments and cheques can appear in your balance but be reversed later if they are fake, leaving you liable for the refund you sent.
Why would someone overpay on purpose?
The overpayment is the trick. They expect you to return real money quickly, before the original fake payment is reversed.
How long should I wait before refunding?
Wait until your bank confirms the funds are final, which can take several days or more for some payments. When unsure, ask your bank directly.
What if I have already sent the difference back?
Contact your bank right away to report it and ask if the transfer can be recalled. Keep all records and report the scam to the authorities.

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.