How the scam works
A refund scam comes in two common forms. In the first, you receive a message saying you are owed money - a tax rebate, an overcharge, a subscription refund - and to claim it you are asked to enter your bank or card details on a linked page. In the second, you are selling something online and a buyer deliberately pays too much, then asks you to refund the difference.
In the overpayment version the original payment is fake, reversed, or made with a stolen account. By the time the bank cancels it, you have already sent real money back to the scammer.
Why it works and who is targeted
The promise of unexpected money lowers your guard, and the word refund sounds harmless because it implies money flowing to you, not away. Overpayment scams target private sellers on classifieds and marketplace sites, as well as freelancers and small businesses who invoice customers.
The scammer relies on the gap between when a payment appears in your account and when it is truly settled. Many people assume that the money being there means it cannot be taken back, which is not how bank transfers, cheques, or some instant payments work.
Warning signs in detail
Be cautious when a buyer pays more than the agreed price and immediately asks for the difference back, especially to a different account or by a different method than they paid. Be equally cautious with refund notices that require you to enter full card or banking details rather than simply crediting an account you already have.
Other red flags include pressure to act fast before the refund expires, requests routed through gift cards or crypto, and refund senders whose email address or link domain does not match the real company.
How to protect yourself
Never refund an overpayment until the original payment has fully and irreversibly cleared, and ask your bank directly if you are unsure. If a buyer overpays by mistake, the safe answer is to cancel the transaction and have them pay the correct amount, not to send money back.
For refund notices, do not click the link. Log in to the company or your bank through its official app or website and check whether any refund is actually pending. Legitimate refunds go back to the original payment method automatically and never need your full details.
