$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
fake check overpayment scam
A buyer sends a check for more than the agreed price and asks the seller to wire back the difference before the check bounces.
“check scam”
↑ 34%Key indicators
Usually targetsSellers
Often hitsFreelancers and contractors
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
The scammer contacts a seller and agrees to buy an item, then sends a check for more than the price.
2
They ask the seller to deposit the check and wire back the difference via Western Union or gift cards.
3
The bank initially credits the deposit, but the check bounces days later and the seller loses the wired funds.
What to do first
Never accept a check for more than the selling price.
Related terms
overpayment check scamcheck refund scamexcess payment fraudCheck and money order scamsEmailRisingSellersSmall business ownersFreelancers and contractorsSmall business ownersPayroll, HR, and finance teamsUnited StatesCanadaUnited Kingdomoverpayment check scamcheck refund scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
James, 35, a sellers, encountered what appeared to be a legitimate check and money order scams situation while using Email. The scammer contacts a seller and agrees to buy an item, then sends a check for more than the price.
Step 2
What happened next was calculated: They ask the seller to deposit the check and wire back the difference via Western Union or gift cards.
Step 3
The pressure escalated quickly: The bank initially credits the deposit, but the check bounces days later and the seller loses the wired funds.
The outcome
James realized something was wrong when check amount significantly exceeds the agreed sale price. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Never accept a check for more than the selling price. James's experience shows why check amount significantly exceeds the agreed sale price and buyer urges you to wire the overpayment back immediately are the clearest early warning signs.
How to identify it
- Check amount significantly exceeds the agreed sale price
- Buyer urges you to wire the overpayment back immediately
- Buyer is unavailable for in-person pickup or local payment
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Never accept a check for more than the selling price.
- ✓Wait at least two weeks for a check to fully clear before spending any of the funds.
- ✓Report the incident to the FTC at ReportFraud.ftc.gov.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
- ✓Keep the full sender address, domain, attachments, and—if possible—the raw email headers.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC warns that fake check scams cost consumers over 28 million USD in reported losses in 2023.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Never accept a check for more than the selling price.
- ✓Wait at least two weeks for a check to fully clear before spending any of the funds.
- ✓Report the incident to the FTC at ReportFraud.ftc.gov.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC warns that fake check scams cost consumers over 28 million USD in reported losses in 2023.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Sellers, Small business owners
Geographic concentration
United States, Canada, United Kingdom
Primary channel
Email — Check and money order scams
Why this group is vulnerable
Sellers are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC warns that fake check scams cost consumers over 28 million USD in reported losses in 2023.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about fake check overpayment scam
How does the fake check overpayment scam work?+
The scammer contacts a seller and agrees to buy an item, then sends a check for more than the price. They ask the seller to deposit the check and wire back the difference via Western Union or gift cards. The bank initially credits the deposit, but the check bounces days later and the seller loses the wired funds.
What are the warning signs of fake check overpayment scam?+
Check amount significantly exceeds the agreed sale price Buyer urges you to wire the overpayment back immediately Buyer is unavailable for in-person pickup or local payment
What should I do if I encounter fake check overpayment scam?+
Never accept a check for more than the selling price. Wait at least two weeks for a check to fully clear before spending any of the funds. Report the incident to the FTC at ReportFraud.ftc.gov.
Who is most at risk for fake check overpayment scam?+
This scam primarily targets Sellers, Small business owners. It is most commonly reported in United States, Canada, United Kingdom and typically appears on Email.
Is fake check overpayment scam on the rise?+
fake check overpayment scam is currently on the rise with growing reports. It has been reported across US, CA. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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