Last verified by our editorial team: April 2026
The overpayment scam is one of the oldest and most damaging job frauds. Victims receive a cheque from a 'new employer' for an amount larger than agreed, are asked to wire back the difference, and discover days later that the original cheque was fake. The bank reverses the deposit but the wired money is gone, leaving the victim owing thousands. This guide explains the mechanics of the scam, why banks initially honour fake cheques, and how to recognise the trap before you wire anything.
If a new 'employer' sends you a cheque for more than agreed and asks you to wire back the difference, it is a confirmed overpayment scam. Cheques can take 7-14 days to fully clear, and the bank will reclaim the amount once the cheque bounces.
Step 1: You are 'hired' for a remote role (often mystery shopper, virtual assistant, personal aide). Step 2: The employer sends a cheque for an amount larger than your first pay period. Step 3: You are asked to deposit it and wire back the excess to a 'vendor' or 'colleague' for equipment, rent, or services. Step 4: You wire the funds. Step 5: The cheque bounces 7-14 days later. The bank reverses your deposit, leaving you on the hook for the wired amount.
Federal regulations (Reg CC) require banks to make deposited funds available within 1-5 business days, even before the cheque has fully cleared with the issuing bank. This means your account shows the deposit is 'available' before the cheque has been verified. When the issuing bank rejects the cheque days later, your bank reverses the credit and recovers the funds from your account.
Bank wire transfers (and Zelle, Cash App, payment apps) are designed for fast, final settlement. Once you send money, the recipient bank credits the account immediately. There is no chargeback mechanism. Even if you contact your bank within minutes, the wired funds are typically gone.
Variant 1: Mystery shopper sends a cheque to 'evaluate a money transfer service' by wiring most of the funds. Variant 2: Personal assistant role sends extra to 'pay a vendor' on the boss's behalf. Variant 3: Virtual receptionist receives a cheque to 'cover office supplies' and wire the surplus to a supplier. All three are the same scam.
Never deposit a cheque from someone you have not met in person and verified. Never wire money on behalf of an employer in your first weeks. Wait 14 business days before treating any cheque as cleared. Confirm with your bank in writing that the cheque has 'fully cleared' (not just 'available') before withdrawing or wiring. If asked to wire back any portion, refuse and report.
Usually 7-14 business days. Banks make funds available quickly under Reg CC, but the issuing bank may take up to two weeks to reject a fake cheque. Once rejected, your bank reverses the deposit.
Generally no, if you were genuinely defrauded. But you will owe the bank for the wired amount. Document everything to show you were a victim if questions arise.
Contact your bank immediately to attempt a wire recall. Success rates are low (under 20%) because wires are designed for fast final settlement. Report to FTC, FBI, and police immediately.
Both roles legitimately involve handling small amounts of money for the employer. The scam exploits this by making the money handling look like a normal early-stage task.
Sometimes. Ask the bank to verify the cheque with the issuing bank before depositing. Many banks will only confirm 'available funds' status, not full clearance. Always wait 14 business days before wiring.
Legal but suspicious. Real employers do not 'accidentally' overpay before you have started. Any overpayment in your first weeks is a confirmed scam pattern.
Ignore the threat. Real employers do not threaten new hires. The threat is a pressure tactic. Report to FTC, your bank, and local police, and stop all communication.
Rarely. Overpayment scams require fake cheques (which take time to bounce). Direct deposits are typically real money, though they can be reversed if obtained fraudulently. The cheque variant is by far the most common.