Key takeaways

Never send money back to a buyer who paid you more than your price. A check can look real and still be fake, and you owe the bank when it fails.

  • The FTC says the check may look real even to bank staff, and funds can show in your account before anyone has verified it.
  • When the check fails, the bank can pull the money back and you are left owing it, while the money you sent is gone.
  • Do not accept a check for more than the selling price. Stay on the platform and use its payment tools.

Got a name, website, or phone number from the sender? Check the scam directory.

How an overpayment scam works

You list an item for sale. A buyer replies quickly, often without asking about the item. They send a check or money order for more than the price, then say there was a mistake, or that the extra is for a shipper, a fee, or a relative, and ask you to send the difference back. Scamwatch describes this as the buyer hoping you refund the excess before the original payment fails.

The FTC explains why it works. Banks must make deposited funds available quickly, so the money can appear in your account before anyone has checked the check, and the fraud can take weeks to surface. The FTC says that even if you see the funds in your account, that does not mean it is a good check. The check may be printed with a legitimate bank’s name or drawn on a stolen account.

When the bank finds the check is fake, it can pull the money back. You owe it, and the money you sent onward is gone. The same fake-check pattern is used in prize scams and fake job offers: see lottery and prize scams and job scams.

Eight warning signs

  1. A buyer who pays more than your asking price. The FTC lists an overpayment on an online sale as a classic fake-check setup. Do not accept a check for more than the selling price.
  2. A request to send the extra back. The ask is always the same: keep your price, return the difference. The FTC says not to send gift cards, money orders, cryptocurrency, or wire money from check funds.
  3. A buyer who wants an expensive item without seeing it. Scamwatch lists a buyer who wants an expensive item without viewing it in person as a warning sign.
  4. Unusual payment methods. Scamwatch lists payment by money order, pre-loaded card, or to several different PayIDs or accounts as red flags. Use the payment tools the marketplace recommends.
  5. A name that does not match. Scamwatch lists an account holder name that does not match the person or business you think you are dealing with. Where a payee-name check exists, use it.
  6. A reason for the extra money. The FTC says scammers give a reason, such as taxes, fees, supplies, or a buyer’s overpayment. The reason changes. The request to pass money onward does not.
  7. A payment that “clears” quickly. Funds that appear in your account are not proof the check is good. The FTC says the bank can pull the money back later. Wait for the bank to confirm the check has fully cleared before you act, or better, refuse checks.
  8. A push to leave the platform. Scamwatch advises keeping communications within the platform you are using. A buyer who wants to move to text or email, and avoids the platform’s payment tools, is removing your protections.

How to sell safely

  1. Say no to any payment for more than the price. Offer to take the exact amount through the marketplace’s own payment tool, or in person.
  2. Do not send anything back, ship the item, or hand it over until you are sure the money is yours. The FTC says only deal with people you know and trust when a check is involved.
  3. Keep the conversation and the payment on the platform. Scamwatch recommends this and using secure payment methods the marketplace recommends.
  4. For high-value items, meet in a public place, let the buyer inspect the item, and take payment you can verify on the spot.
  5. For buyer-side risks, read online shopping scams.

If you already deposited the check or sent money

The FTC lists what to do by payment method. Start with the call that matches how you sent the money.

  1. Stop. Do not send any more, and do not ship the item. Cut contact with the buyer, as Scamwatch advises.
  2. Tell your bank. Say the check may be fake and ask what happens next. Contact your bank or card provider and ask them to stop any transactions.
  3. Contact the payment provider you used. Gift card: tell the issuer right away and ask for a refund. Wire transfer: call MoneyGram or Western Union immediately and request a reversal. Money order: contact the issuer to stop payment. Cryptocurrency: contact the company you used and report the fraud.
  4. If you sent cash or a check by U.S. mail, the FTC says to contact the U.S. Postal Inspection Service on 877-876-2455.
  5. Report it. The FTC suggests the FTC, the U.S. Postal Inspection Service, and your state Attorney General. See the list below for other countries.
  6. Change passwords if you shared any login details, and see recovery scams before you pay anyone who offers to get your money back.

Where to report

More help from official sources

Scambaba is an independent educational project. Reporting and recovery options depend on where you live. How these guides are researched is on the editorial policy.

Frequently asked questions

What is an overpayment scam?

A buyer sends more than the agreed price and asks you to refund the difference. The original payment, often a check or money order, later fails. Scamwatch describes the buyer as hoping you refund the excess before that happens.

Why does the money show in my account if the check is fake?

The FTC says banks must make deposited funds available quickly, so money can appear before the check is verified. It can take weeks for the fraud to surface, and the bank can then pull the money back.

Do I have to pay the bank back?

The FTC says that when a check is found to be fake, the bank can pull the money back and you are left owing it. Tell your bank as soon as you suspect the check, and ask what your account terms say.

Can I recover what I sent?

It depends on how you paid. The FTC advises contacting the gift card issuer, the wire company, the money order issuer, or the crypto company right away and asking for a refund or reversal. Speed helps, but recovery is not guaranteed.

Is it only checks?

No. Scamwatch also lists payments by money order and pre-loaded card, and payments to several different accounts, as warning signs. The pattern is the same: more than the price, and a request to pass money onward.