Fake Cheque and Overpayment Scams: How to Protect Yourself
One of the most common online marketplace scams involves a buyer offering to pay by cheque—often for more than the asking price.
The buyer asks you to deposit the cheque, keep a portion of the money, and send the remaining funds to a shipping company, mover, agent, or another third party.
The cheque later turns out to be fraudulent, counterfeit, altered, or unsupported by sufficient funds. By that time, any money you forwarded is usually unrecoverable, and you may also lose the item you sold.
Warning Signs of a Fake Cheque Scam
Be cautious if a buyer:
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Offers to pay more than your asking price
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Asks you to forward money to a third party
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Claims a shipping company requires payment from you
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Refuses or avoids meeting in person
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Provides lengthy explanations for why they cannot complete the transaction locally
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Pressures you to act quickly before the cheque fully clears
If a buyer asks you to send money after depositing their cheque, it is a major red flag.
Our Recommended Payment Methods
As a local marketplace, Kijiji strongly encourages buyers and sellers to meet in person whenever possible.
Preferred payment methods include:
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Cash for local, in-person transactions
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Interac e-Transfer for eligible transactions
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Certified cheques or bank drafts that can be verified directly with the issuing bank
Avoid wire transfer services such as Western Union or MoneyGram for person-to-person sales, as these payment methods are frequently targeted by scammers.
If You Choose to Accept a Cheque
Before accepting a cheque, consider the following precautions:
Verify the Buyer
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Review the buyer’s profile history and ratings
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Check how long the account has been active
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Request a phone number and speak directly with the buyer
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Ask why a cheque is necessary instead of a safer payment method
Inspect the Cheque Carefully
Do not accept a cheque if:
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It appears altered or tampered with
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Information is incomplete or missing
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It is post-dated
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It has been endorsed by a third party
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The amount exceeds the agreed sale price
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It is a counter cheque without preprinted banking information
For business cheques, confirm that using a company cheque makes sense for the transaction.
Canadian cheques and money orders generally include security features such as watermarks and specialized printing patterns. Verify that these features are present.
How to Verify a Cheque Safely
To reduce risk:
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Meet the buyer at their financial institution and watch the certified cheque or bank draft being issued
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Ask your bank to verify the cheque before using any funds
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Confirm with your bank when the cheque has fully cleared with the issuing institution
Important: A cheque deposit becoming available in your account does not necessarily mean the cheque has cleared.
Full verification can take one to two weeks or longer, depending on the financial institution and circumstances.
Do Not Release the Item Until the Cheque Clears
Never:
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Ship the item
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Transfer money to another person
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Pay a shipping company
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Refund an overpayment
until your bank confirms that the cheque has fully cleared and the funds are legitimate.
Keep Documentation
Maintain records of:
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Messages exchanged with the buyer
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Receipts
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Cheque images
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Tracking information
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Contact details
These records may be useful if fraud is suspected.
Who Is Responsible if a Cheque Bounces?
If a deposited cheque is returned unpaid, the account holder who deposited it is generally responsible for any resulting loss.
For this reason, always verify funds directly with your bank and wait for complete clearance before completing the transaction.
What Should I Do if I Suspect Fraud?
If you believe you may be dealing with a scam:
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Contact your bank immediately.
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Stop all payments, refunds, or shipments.
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Report the incident to Kijiji and provide all relevant communications and transaction details.
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Consider contacting local law enforcement, especially if money or merchandise has already been exchanged.
Summary
The safest option is to meet locally and accept cash or another secure payment method.
If you decide to accept a cheque, verify the buyer’s identity, confirm the cheque’s authenticity with the bank, and wait until the funds have fully cleared before releasing the item or sending money to anyone.