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Overpayment Scams: How They Work, And How To Avoid Them

You are probably aware of different kinds of scams, from Ponzi schemes to debit card fraud, but because we care, we want to explain a recent scam method known as the Overpayment Scam.

These days where all you need to run a business is an Instagram account, online vendors are the most common victims of this scam.

Here is how they do it:

– A vendor is contacted by the scammer, who indicates interest in a product, then uses a stolen debit card to pay more than the agreed amount.

– The scammer then informs the vendor that they “overpaid”, and the vendor unsuspectingly “refunds” the excess sum, while sending the item that has been “paid for”.

– Shortly after, the bank to which the stolen card is linked contacts the vendor, informing them that the “payment” made would have to be reversed.

– This means that the vendor has not only given up the item for absolutely nothing, they have also parted with money.

It’s very easy to let your guard down, especially if you are a vendor and the fake payment is made into your account. This is why you have to be really cautious, and stay one step ahead of fraudsters by taking the following steps:

  1. Process your transactions with only payment methods you are familiar with. If you opt for an easy platform, like Paga for example, make sure to stick with that in all your transactions.
  2. Always confirm payments with your bank. If you get an alert for a payment that doesn’t reflect in your account, contact your bank or your trusted payment platform to confirm that the alert is real.
  3. If you receive way too much money than the cost of the item in question, refund the entire sum and ask for another transfer with the correct amount. This reduces the possibility of being scammed.

We know that money is not easy to come by, which is why we care about the safety of your funds at all times. You don’t want to have someone “accidentally” paying you N200,000 for an item that only costs N20,000, and then having you part with the item as well as N180,000.

Always contact your trusted payment platforms. We are here to advise and protect.

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