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Cheque overpayment fraud

Cheque overpayment fraud is when a fraudster pays a business for goods or services by a fraudulent cheque. The cheque is made for a higher amount than the actual value.

The business reimburses the fraudster with the excess amount of money that was apparently paid to it, before it discovers that the cheque was not genuine.

Not only does the business go unpaid for the goods or services, but loses further money because of the ‘excess payment’ it paid the fraudster.

Cheque overpayment fraud is often a method used in employment opportunity scams or transactions for goods and services sold through classified adverts.

When an individual rather than a business is the victim of such a fraud, it is known as advance fee fraud.

Fraud has been committed if money has been lost.

If fraud has been committed, report it to Action Fraud.

See also:
Advance fee fraud
Employment fraud
Online shopping fraud