Overpayment scams are on the rise, preying on unsuspecting victims across various scenarios. These scams typically begin with a scammer sending a check for more than the agreed amount, then requesting the excess funds be transferred to an unrelated third party. Once the check bounces, the scammer disappears, leaving the victim with a significant financial loss. The article outlines five common overpayment scams, offering practical advice to help readers recognize and avoid these dangerous tactics.
One of the most common overpayment scams involves fake dog sitting gigs. In this scenario, a scammer pretends to need someone to care for a pet or handle a temporary task, such as dog sitting. They promise payment for the service, but then send a check for more than the agreed-upon amount. For example, Bob from Harrison, Ohio, recently fell victim to a scam where a supposed pet owner sent him a check for $4,358, requesting $4,000 be sent to an appliance retailer. The check was fake, and once it bounced, Bob was left responsible for the full amount. The scammer used a third party—a fake appliance retailer—to make the request seem legitimate, adding urgency and legitimacy to the request.
Other prevalent overpayment scams include fraudulent rental deposits, where a check for more than the deposit amount is sent, and the victim is asked to refund the difference. Marketplace fraud is also common, especially when buyers send too much money for a product and then request a refund through platforms like Zelle or Venmo. Once the check is reversed, the victim loses both the product and the returned funds. Job seekers are also particularly vulnerable, as scammers may pose as employers sending large checks to buy office equipment and request the extra funds be forwarded to a vendor, which is another scammer-controlled entity.
The article emphasizes the importance of always verifying payment methods and never transferring funds to third parties. A key warning sign is when a third party is involved, especially if it is unrelated to the original deal. Scammers often use third parties to add legitimacy to their requests and to avoid direct financial transactions. If a buyer pushes for a refund quickly, it is a strong indication that the transaction is fraudulent. Instead, victims should insist on using verified payment methods or in-person transactions with verified funds.
Additionally, the article warns that scammers often use urgency to pressure victims into making quick decisions. This tactic is used in fake agent phone scams, which are spreading rapidly across the United States. Victims may receive emails or letters offering a job as a mystery shopper, only to be asked to send gift card codes back as proof of purchase. The check is fake, and once the bank reverses the transaction, the victim loses the money spent on the gift cards. Real companies never pay upfront with extra funds or ask for gift card codes via email.
Victims are advised to save all evidence, including the check and envelope, as it can be crucial for reporting the scam to authorities. By keeping this documentation, individuals can provide valuable evidence to law enforcement and protect themselves from future attempts by the scammer, who may use a different identity. Scammers often target individuals by scraping personal details from online data brokers, making it imperative for individuals to protect their personal information. Using a data removal service can help limit exposure to scammers who may use stolen information to target individuals.
Many banks offer fraud alerts that can help catch suspicious activity early. These alerts can be set for large deposits or unusual transactions, allowing customers to review suspicious activity before a scammer pressures them into acting. Reporting scams not only protects the individual but also helps prevent other victims from falling prey to the same scammers. Readers are encouraged to report any suspicious activity to the Federal Trade Commission (FTC) at reportfraud.ftc.gov and their state attorney general.
Finally, the article concludes that overpayment scams are becoming increasingly sophisticated, and individuals must remain vigilant. Whether it’s for rent, freelance work, or selling a used item, scammers often prefer paper checks because they are easy to fake. By using secure, traceable payment platforms or in-person transactions with verified funds, individuals can protect themselves from the financial losses associated with these scams. Awareness and caution are key in preventing victims from falling for these increasingly common overpayment schemes.