Overpayment Scams: How to Recognize and Avoid Fake Payment Fraud
Overpayment scams are a common type of fraud that can occur when buying or selling items online. In these scams, fraudsters attempt to send fake payments or fraudulent cheques and then convince you to send money to a third party before the payment clears.
Kijiji is committed to helping users recognize these scams and protect themselves from financial loss.
How Overpayment Scams Work
In a typical overpayment scam, a fraudster will try to avoid meeting in person and instead propose a remote transaction. They often create detailed stories to appear legitimate and to pressure you into acting quickly.
A common example message may look like this:
“Everything sounds good to me and I will instruct my secretary to issue the payment to you ASAP for confirmation. As soon as you receive the payment, my nanny will need the remaining funds for relocation with my son for tutoring. Please deduct your fee and send the balance to the nanny via Western Union…”
This is a classic overpayment scam. The fraudster sends a fake cheque or fraudulent payment that appears valid at first. They then ask the victim to send part of the money to a third party before the original payment is discovered to be invalid or reversed.
What the Scam Is Trying to Do
The goal of an overpayment scam is to:
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Trick you into depositing a fake cheque or fraudulent payment
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Convince you to send money to a third party
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Create urgency so you act before verifying the payment
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Leave you responsible for the lost funds when the payment fails
Red Flags to Watch For
Be cautious if a buyer or seller:
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Offers to pay more than your asking price
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Asks you to send the extra money to someone else
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Mentions third parties such as nannies, agents, or assistants
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Uses payment methods like Western Union, MoneyGram, or wire transfers
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Pressures you to act quickly before payment clears
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Sends generic or copy-paste messages that do not reference your specific item
How to Protect Yourself
Verify all payments before sending money
Cheques, e-transfers, and other payments can appear legitimate but may later be reversed or cancelled.
Never send money until funds have fully cleared in your account.
Never send money to third parties
If someone asks you to forward part of a payment to another person, this is a strong indicator of fraud.
Keep communication direct
If possible, speak directly with the buyer or seller using a verified phone number to confirm details.
Avoid sharing sensitive information
Do not share banking details or personal information to “facilitate” a transaction.
Be cautious of automated or repetitive messages
Fraudsters often reuse identical messages across multiple listings or use automated tools to generate scripts.
What to Do If You Receive This Message
If you receive a message that appears to be an overpayment scam:
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Do not deposit any suspicious cheque or payment
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Do not send money to any third party
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Stop communication with the sender
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Report the listing or message on Kijiji
Best Practices for Safe Transactions
The safest way to complete a transaction is:
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Meet in person whenever possible
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Exchange goods and payment directly
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Use trusted, traceable payment methods
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Verify payment before releasing any item
If something feels unusual or too good to be true, it is best to walk away from the transaction.
Our Commitment to User Safety
Kijiji is committed to helping users identify and avoid scams through education and awareness. By recognizing common fraud patterns such as overpayment scams, users can protect themselves and complete transactions more safely.