Greg's Corner

Overpayment Scam Targets Online Sellers

By Greg Collier

The Williamson County Tax Assessor’s Office in Texas has alerted the public to a new scheme designed to defraud unsuspecting victims. Fraudulent checks made to look as if they originated from the county are being used in attempts to purchase expensive items, including vehicles.

The method involves sending a check that exceeds the sale price of the item, followed by instructions for the seller to return the excess funds. While the check may appear legitimate at first glance, it has no real value and is part of a coordinated scam. Anyone depositing such a check risks financial loss once the fraud is uncovered.

This is a scam we have covered many times before, but it bears repeating as it continues to find new victims. Known as the overpayment scam, it remains a common tactic used against people selling items online. In reality, every check should be viewed with suspicion, especially in private transactions where verification can be difficult.

What makes the scam particularly effective is the way banks process deposits. Funds from a check may appear in an account quickly, sometimes within a day, but it can take weeks for the bank to confirm whether the check is legitimate. By the time the fraud is discovered and the deposit reversed, many victims have already sent the supposed extra money back to the scammer, leaving them with the financial loss.

There are common warning signs that sellers should keep in mind. A check written for more than the agreed price, requests to wire or return money to the buyer, and pressure to complete the transaction quickly are all indicators of fraud. Any check received under those circumstances should be treated as highly suspicious.

Reports of fraudulent checks should be directed to law enforcement. This ensures that potential crimes are properly documented and that investigators can track ongoing scams.

This warning highlights the importance of caution when conducting private sales. Fraudulent tactics continue to evolve, and vigilance remains one of the best defenses against financial exploitation. Scammers often use the names of trusted institutions to give their schemes credibility, which makes it all the more vital to verify every transaction before acting.