- See also: Tutor Scam ... Nanny/Babysitter Scam
What is a check overpayment scam?
A "check overpayment scam," also called a "fake check scam," starts with a person who wants to buy something from you or hire you short-term for a service you offer, such as a personal assistant, babysitting, or tutoring. They want to pay you in advance in a lump sum. They will send you a cashier's check that is more than what was agreed, usually by several hundred dollars. They have a good story to explain why they needed to send you more than the agreed-upon sum (view Examples of scam emails sent to BPN). The scammer tells you to deposit their check in your own bank account, and when it clears, they will "trust" you to send them (or someone else) the excess. They may ask you to wire the money directly, or send bitcoin, or send a prepaid Visa card. Their check has a real bank's name and routing number on it, usually in another state, so your bank makes the funds available to you after a couple of days. Thinking you now have the money in your account, you send them the excess. In a week or two, the scammer's check will be found to be counterfeit, and your bank will deduct the amount of the scammer's check from your account. You will be liable for the entire amount. There is no way to recover it.
Warning signs that it's a scam:
- They want to pay you the entire sum in advance.
- They are not able to meet with you in person.
- They send you a check for more than the agreed-upon amount.
What to do if you are scammed:
Stop corresponding with them immediately. Ignore further emails and texts. If they tricked you into sending money, you can report the theft (see instructions on the FCC website), but it's unlikely you'll get your money back since the scammer will have already collected the funds by the time you realize it was a scam. These scams are operated from remote locations, often overseas, and are virtually impossible to trace or prosecute.
Best way to avoid these scams:
- Do not make any agreements with people who do not live locally and can't meet with you in person.
- Never send money to anyone who first contacted you by email or text.
For more information, see: How To Spot, Avoid, and Report Fake Check Scams (Federal Trade Commission)