Cheque Overpayment Fraud
Overpayment scams is the type of fraud where the person receiving the fraudulent cheque is actually owed money for goods sold. The seller receives a counterfeit cashier’s cheque, personal cheque, or corporate cheque from the “purchaser” in an amount in excess of the amount owed; is asked to deposit the cheque and wire the excess funds immediately back to the sender/purchaser or the purchaser’s agent or shipper; and, the deposited cashier’s cheque is subsequently returned as counterfeit and charged back to the seller’s account.
Anyone selling goods should be suspicious of any cheque, especially if it is for more than the agreed selling price. Consider an alternative method of payment, such as an escrow service or online payment service. Talk to your bank about the safest way to receive funds from overseas.
To protect yourself against this sort of scam, never agree to a deal in which the payer wishes to issue an amount for more than the agreed price and expects you to reimburse the balance. The scammers use a variety of excuses to explain the overpayment, but any such excuse should be treated with the utmost suspicion.
In order to avoid overpayment scams, remember the following general words of advice:
- Know whom you are dealing with – independently confirm your buyer’s name, street address, and telephone number
- Never accept a cheque for more than your selling price
- Never agree to wire back funds to a buyer – a legitimate buyer will not pressure you to do so, and you have limited recourse if there is a problem with a wire transfer
- Resist pressure to “act now.” If the buyer’s offer is good now, it should be good when the cheque clears; if you accept payment by cheque, ask for a cheque drawn on a local bank or a bank with a local branch. You can visit that bank branch to determine if the cheque is legitimate
- If you do not feel comfortable with the service, do not use it.
For more information visit www.phonebusters.com.
— Centre Hastings OPP press release