Childcare Providers Are the Latest Targets of an Old Scam
By Greg Collier
For years, scammers have been using variations of the same overpayment scam to steal money from unsuspecting victims. The targets have changed over time. Online sellers, landlords, job seekers, freelancers, and small businesses have all been caught in its web.
Now, according to a warning from the Federal Trade Commission, childcare providers are finding themselves in the scammers’ crosshairs.
The setup may sound new, but the underlying fraud is one of the oldest and most successful scams on the internet.
A stranger sends you a payment. The payment is for more than you were expecting. They ask you to send back the difference.
What happens next is where victims lose money.
What’s Going On?
According to the FTC, scammers are posing as parents who urgently need childcare services.
The fraudsters reach out through:
- Text messages
- Social media
- Online caregiving platforms
The story often sounds believable.
The supposed parent claims they are relocating to the area, sometimes from another state or even another country. They explain that they need childcare arrangements quickly and want to reserve a spot in advance.
To show they are serious, they send a check.
At first glance, it appears to be good news.
Then the problem appears.
The check arrives for more money than expected.
Soon afterward, the “parent” contacts the provider with an explanation. They claim they accidentally overpaid and ask for the excess money to be returned.
That’s the trap.
How the Scam Works
The scam succeeds because most people misunderstand how checks are processed.
Many victims believe that if a bank accepts a check and makes the funds available, the check must be legitimate.
Unfortunately, that’s not how the system works.
Banks often make funds available before the check has fully cleared. The verification process can take days or even weeks.
During that window, the money may appear in the victim’s account.
Believing the payment is legitimate, the childcare provider sends the “overpayment” back through:
- Wire transfers
- Payment apps
- Gift cards
- Cryptocurrency
Later, the bank determines the original check is fraudulent.
The deposited funds disappear.
But the money sent to the scammer is gone for good.
The victim is left covering the loss.
Why This Scam Keeps Coming Back
One reason the overpayment scam has survived for so many years is because it can be adapted to almost any situation involving payments.
We’ve seen versions targeting:
- Online marketplace sellers
- Small businesses
- Job seekers
- Freelancers
- Landlords
- Event vendors
- Personal assistants
- Pet sitters
- And now childcare providers
The details change.
The scam doesn’t.
The criminal’s goal is always the same: convince the victim to send real money in exchange for fake money.
Why Childcare Providers Are Vulnerable
Many childcare providers operate small businesses and frequently communicate with new families.
A request from a parent seeking immediate care does not seem unusual.
In fact, urgency is often part of legitimate childcare arrangements.
Scammers know this.
By creating a believable story involving relocation, work schedules, or family needs, they can make their request appear routine rather than suspicious.
The fraud also exploits something many caregivers value deeply: helping families during stressful situations.
Red Flags
Watch out for these warning signs:
- A prospective client you’ve never met wants to pay immediately.
- Someone claims to be moving from another city or country.
- A check arrives for more than the agreed-upon amount.
- The sender asks you to return part of the payment.
- The person creates a sense of urgency.
- They request repayment through wire transfers, payment apps, gift cards, or cryptocurrency.
- The explanation for the overpayment seems confusing or overly complicated.
The biggest red flag of all?
Anyone who sends you too much money and then asks for some of it back.
Quick Tip: A legitimate customer who accidentally overpays by check can wait for the check to fully clear and for the situation to be resolved through normal banking channels. A scammer needs you to act before the bank discovers the check is fake.
What You Can Do
Slow Down
Scammers want victims to make quick decisions. Taking extra time often exposes the fraud.
Verify the Customer
Ask questions, request references when appropriate, and confirm identities through independent means.
Never Return Overpayments
If someone sends more money than expected, do not send any portion back until your bank confirms the funds are legitimate and fully cleared.
Be Skeptical of Advance Payments
Especially when they come from strangers who are eager to secure services immediately.
Contact Your Bank
If you’re unsure whether a check is legitimate, speak with your financial institution before taking any action.
If You’ve Been Targeted
- Stop communicating with the suspected scammer.
- Contact your bank immediately.
- Save emails, text messages, checks, and payment records.
- Report the incident to local law enforcement if appropriate.
- File a report with the FTC.
The sooner you act, the better your chances of limiting further losses.
Final Thoughts
The FTC’s warning about childcare providers highlights an important lesson: scammers rarely invent entirely new schemes. Instead, they recycle old scams and adapt them to new audiences.
The overpayment scam has been plaguing consumers and businesses for years because it exploits a simple misunderstanding. People assume money appearing in their account means the payment is legitimate.
Scammers know better.
Whether the target is a marketplace seller, a job seeker, a small business owner, or a childcare provider, the formula remains the same. Send fake money. Ask for real money back. Disappear before the fraud is discovered.
That’s why the safest response to any unexpected overpayment is also the simplest one: never send money back to someone who sent you too much in the first place.











Leave a Reply