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 BUSINESS ETHICS GUIDELINES AND RESOURCES

Home > The Overpayment Scam

This scam has been around for a long time, and it still continues to hurt small businesses. This is how it works. The business gets an order from a new customer. The amount of the order can vary depending on the person or persons running the scam. Once the order is placed the potential client sends out a check for more than the invoiced amount.

At this point the scammer is hoping that the business fills the order, and sends a check back with the difference from the overpayment. Then the business goes to cash the original check, and they find out either it’s stolen or it’s from a bank account that has long since been closed. In the end the business ends up loosing money on the product it sent out, the shipping costs, and even cash.

The scam depends on businesses without payment process policies. If your company had a policy in place to hold orders on all new customers until their check cleared at the bank you’ll never fall victim to this scam.

This information is compiled and provided by George S. May International Company.
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