I've covered scams for years now, and one that's been around for a while is the overpayment scam, often associated with fake remote job offers. Consumer advocates are now saying scammers are even targeting non-profits.
I talked with a Detroit native and a Southfield man who were targeted by overpayment scammers, and an expert with the Better Business Bureau on the latest twist in these cases, plus the red flags you need to look for.
I've reported on job-related overpayment scams since the pandemic. Octavia Downs of Redford told me back in 2021that one remote job offer needed her to pay for office equipment with a suspicious check.
“Well, they said via a check printer," Downs said. "And I said, ‘A check printer? I don’t have one of those!’"
This week, I met Detroit native Gladys Neal who told me she frequently receives texts about suspicious job offers.
"In fact I got one about a job yesterday saying, 'Would you, are you interested in being a recruiter?' – just random!” Neal said. "And I just blocked it."
Michael Pugh II of Southfield fell victim to an overpayment scam a few years ago when he received an email on Indeed offering him a remote job, but first he needed money to buy a printer.
"Your ‘employer’ wanted you to get Bitcoin involved with paying you?" I asked Pugh.
"Definitely yeah, for sure," Pugh responded.
"That is definitely a red flag," I said.
“I was kind of like why do I have to go to this specific Bitcoin ATM to receive, you know what I mean, reimbursement for what they needed me to buy," Pugh said.
In these scams, bad actors often ask victims to deposit fake checks and send back the excess amount before the check has bounced. But the problem is not only with checks anymore.
”While the fee is processing, they say the same thing: 'Give me a refund, but give it to me on a different account number.' So, now we have to watch for two things: credit cards and checks being fraudulent," said Nakia Mills.
Mills — Director of Marketing for the Better Business Bureau — says overpayment scammers most recently targeted a non-profit in Detroit: Alternatives for Girls.
Mills says the organization's Director of Finance received a donation of $7,000 from a business she'd never heard of: Michigan Licensing @ Regulations.
But then the donor urgently reached out indicating the gift was accidentally larger than planned and that a portion would need to be returned immediately via wire transfer.
“So, she deposited that check, but then found out from her bank that it was fraudulent," Mills explained. "Luckily, she hadn't issued a refund yet, so she luckily didn't lose anything.”
To avoid overpayment scams:
- Research who contacted you to see if they're legitimate.
- Call them directly or schedule a video conference to learn more.
- Be wary of receiving large amounts of money — whether it's a donation or for a job you haven't done yet.
- If it looks too good to be true, it probably is.
If you work for a non-profit, be vigilant if you're asked to return some money. The same rule of thumb applies if you're in the job market or trying to sell an item online.
If you think you have been the target of a scam, report it to BBB's scam tracker, to your local police, and to the Federal Trade Commission.
