How do Overpayment Scams Work? | Inform your Friends & Family
- Andi Dela Torre Griffiths
- Apr 29
- 3 min read
Updated: May 8
In today’s blog post, we’ll take a quick look at overpayment scams- what they are, who can get victimized, and how it works.
What is a Scam?
A scam is a deceptive act executed by a scammer to get money from the victim. It can be a simple one or part of a large-scale operation.
Scammers are abhorrent and deceitful, but they are also clever. These people know what they’re doing and are eager to take whatever they can. With this, it is crucial to have some awareness to prevent yourself and your loved ones from getting scammed, especially our senior citizens.
Scams in the Digital World
Technological advances have made it easier for us to work, but have also provided more opportunities for scammers to execute their strategies smoothly without being easily identified.
Examples of common digital scams include romance scams, blackmail, bogus selling, parcel scams, and fake job scams.
What is an Overpayment Scam?
An overpayment scam is one where the scammer pretends to make an overpayment and then proceeds to ask the victim for the excess amount.
Who Can Fall Prey to Overpayment Scams?
Anyone can fall prey to overpayment scams, but online businesses are more likely to be targeted. Common examples include travel agencies, online cake shops, smaller hotels or resorts, hostels, AirBNBs, freelancers offering services, tour operators, and restaurants.
Overpayment Scam | How it Works
As mentioned earlier, overpayment scams work by tapping into the victim's good faith.
It starts with the scammer pretending to be interested in the victim's product or service, asking for more information like other customers would, making the purchase, and then sending a screenshot of the overpayment.
A few minutes after this, the scammer will come up with a story to make it seem like they made a mistake sending more than the total amount. Their next move will be to ask the victim to return the excess payment.
Example of an Overpayment Scam
Here's a real-life example based on our experience.
Context:
This person inquired about available rooms for rent via Facebook. She then confirmed their booking and overpaid. Our caretaker was wary of how the customer communicated, so we also checked the messages. Upon going through conversations, we've concluded it's a scam. A quick online search also revealed that they use almost the same script. I saw posts from other individuals online who received the same message (where the husband overpaid for the product or service).
How to Identify an Overpayment Scam
Depending on the scammer's convincing power, these conversations can be easy to spot or hard to recognize, but there will always be a few giveaways to know it's a scam.
There’s a narrative
When we received the screenshots and went through them, we knew it was a scam with all the explanations. It was their hard-selling of the story that gave it away. As you can see from the screenshots above, the scammer said her husband accidentally overpaid and needed the excess amount as soon as possible because they needed it for their bills.
Sense of urgency
Aside from the narrative, you can spot an overpayment scam if there is a sense of urgency- they will say anything to urge you to send the money ASAP because it's only a matter of time before the check bounces or if you figure out it's a scam.
Fake screenshots
Showing interest and sending proof makes everything convincing, so expect realistic screenshots of bank transfers in a scam like this. In our case, they also sent an (obviously fake or stolen) ID photo and selfies inside the plane- as part of the story they wanted us to believe.
What to Do | Important Reminders
Educate yourself and your staff about digital scams like this one.;
Read messages/inquiries carefully. Scammers can be very good at making something look legit.
Most scammers change their names, block victims, or deactivate accounts once the money is received. If you've been scammed and want to file a report, you can reach out to any of the following: the National Bureau of Investigation (NBI) Cybercrime Division, the Philippine National Police (PNP) Anti-Cybercrime Group, the Department of Trade and Industry (DTI), or the Cybercrime Investigation and Coordinating Center (CICC).
