Overpayment Scam UK: How to Spot and Avoid This Common Fraud

Overpayment scammers convince you to send money back by pretending they've accidentally paid you too much — but the original payment was never real.

Published 2026-04-30 · Beat the Scam Editorial Team · 7 min read

What is this scam?

An overpayment scam is when a fraudster sends you a payment (or appears to) and then asks you to return the 'excess'. They might claim they've accidentally overpaid for goods or services, sent money twice by mistake, or paid the wrong amount. The key trick: the original payment is fake, forged, or will be reversed later. Meanwhile, you've genuinely sent your own money back to the scammer. This scam works across multiple platforms — online marketplaces, private sales, rental agreements, employment, and invoicing. The fraudster counts on the delay between when you receive the payment notification and when your bank discovers it's fraudulent. By that time, you've already refunded money you didn't have, leaving you out of pocket with a chargeback on your account.

Warning signs to look for

• You receive a payment notification from an unknown buyer or stranger, especially if you weren't expecting it or recently listed something for sale online.
• The payer claims they've accidentally sent too much money and asks you to transfer the difference back quickly.
• The payment is unusually large or rounded, and they emphasize urgency — 'I need this sorted today' or 'I'm leaving the country tomorrow'.
• They request payment via bank transfer, PayPal friends and family, or cryptocurrency rather than a standard refund through the platform.
• The original payment comes from a suspicious or newly created account, or via a method that later shows as failed or reversed.
• They contact you outside the normal platform messaging, via WhatsApp, email, or phone, to speed up the refund request.
• The story seems unusual — legitimate businesses rarely overpay and ask for immediate refunds in an informal way.
• There's pressure to act quickly before they 'report the error' or before their bank 'freezes the account'.

How this scam works step by step

Step 1: You list an item for sale, advertise a service, or post about a rental — or the scammer approaches you directly. Step 2: They express interest and offer to buy or hire. Step 3: You receive what appears to be a payment notification — perhaps £500 when the price was £300. The notification looks genuine because it comes from a real banking system or payment platform, but the payment is actually fraudulent, cancelled, or will be reversed within days. Step 4: The scammer contacts you (often urgently) claiming they've overpaid by mistake and asking you to 'refund' the difference immediately. They may claim a bank error, a system glitch, or that they accidentally used the wrong account. Step 5: You, believing the payment is in your account, transfer £200 back to them via bank transfer or another method. Step 6: Days or weeks later, your bank discovers the original payment was fraudulent and reverses it. You're left £200 down, and the scammer disappears.

How to verify if it is genuine

First, do not rely on payment notifications alone — these can be faked or refer to pending payments that will fail. Log into your bank's app or website directly (don't use links from messages) and check your actual account balance and transaction history. A genuine payment will appear as a completed deposit with the sender's verified details. Second, if you're suspicious, contact the platform or organisation the payment claims to come from directly — use their official phone number or website, not details provided by the buyer. Ask them to confirm whether the payment is real and settled. Third, wait at least 5-7 working days before refunding anything — this gives banks time to spot and reverse fraudulent payments. If the payment disappears from your account during this time, you have your answer. For marketplace sales, use the platform's built-in payment system and dispute resolution — never accept external payments for listed items. See our guide on [bank transfer scams](/guides/bank-transfer-scam-warning-signs/) for more verification steps.

What to do if you have already interacted

Act immediately if you've sent money to the scammer. Step 1: Contact your bank right away (use the number on the back of your card or in your app) and tell them you've sent money to a scammer. Provide the recipient's account details and the amount. Your bank may be able to recall the payment or freeze the recipient's account if they act quickly — many transfers can be stopped within a few hours. Step 2: Report the fraud to Action Fraud on 0300 123 2040 or online at actionfraud.police.uk. Provide all details: the scammer's contact information, the payment you received (or thought you did), and the refund you sent. Step 3: If the original payment came from a payment app, report it to that platform's fraud team immediately. Step 4: If you've been contacted via email, forward it to the NCSC Suspicious Email Reporting Service at report@phishing.gov.uk. Step 5: Keep all evidence — screenshots, messages, payment confirmations, and bank statements. Do not delete anything.

Reporting this scam in the UK

Report overpayment scams using multiple channels to increase the chances of recovery and prevention. Contact Action Fraud (0300 123 2040 or actionfraud.police.uk) — this is the official UK national fraud reporting centre and they log all reports, which help police identify patterns and prosecute scammers. If you've received a suspicious email claiming to be from a bank or payment service, forward it to the NCSC Suspicious Email Reporting Service at report@phishing.gov.uk. If the scam involved an SMS or text message, forward it to 7726 (SPAM). Report the scammer's account or listing to the marketplace or payment platform where you encountered them — most have dedicated fraud teams and can remove fake accounts or prevent further contact. Contact Citizens Advice consumer helpline on 0808 223 1133 for guidance on your rights and next steps if you've lost money. If your bank was involved, ask them to file a report with their fraud department and request a full transaction history. The more reports made, the faster the scammer can be traced and stopped.

Frequently asked questions