Overpayment Scams Explained

Overpayment scams happen when someone sends you too much money for something you’re selling, then asks you to refund the extra amount. The original payment is fake (like a bad check), so you lose money when you send the refund. Scammers often target online sales.

For example, you sell a couch for $200, and the buyer sends a $500 check, asking you to wire back $300. The check bounces, and you’re out $300. Seniors are targeted because they may sell items online to downsize or trust checks as payment.

Tips to Identify Overpayment Scams

Wait for Payments to Clear: Don’t refund any money until the buyer’s check or payment fully clears with your bank, which can take days.

Be Wary of Overpayments: If someone pays more than your asking price, it’s a red flag. Insist on exact payment.

Use Secure Platforms: Sell through sites like eBay or PayPal, which protect against fake payments. Avoid direct checks or wires.

Check the Buyer: If the buyer’s story or contact info seems odd, search their name or number online for scam reports.

Avoid Rushed Refunds: Scammers pressure you to refund quickly before the payment clears. Take your time to verify.

Ask for Help: If you’re selling online, ask a family member or friend to review the transaction for safety.

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San Diego seniors lost $108 million to scams in 2024