A "client" hires you for a small design job. Before you start, they send a cheque or payment that is bigger than your fee and ask you to forward the extra money to their "supplier" or "shipping agent". You send it. Days later the original payment fails, and you are the one who is out of pocket.
That is the overpayment scam in one paragraph. It works because the first step feels like good news: someone is paying you, and paying more than you asked. This guide explains how the scam is built, how to spot it early, what to do if you are already in the middle of one, and how to set up your work so it can't happen to you.
How the overpayment scam works
The mechanics are simple, and they depend on one fact: a payment showing in your account is not always final. Some payment types can show up quickly and be reversed or rejected later, once the paying bank or platform finishes its checks. The scammer needs you to send real money out before that happens.
- Contact. A stranger messages you on email, LinkedIn, Telegram or WhatsApp. They like your portfolio and want to hire you fast.
- Payment. They send a cheque, bank transfer, or payment from a card or account. The amount is higher than your quote.
- The "mistake". They say their assistant or accountant made an error. Or they say the extra is for a vendor, a courier, software, or a "project manager" you must pay.
- The ask. You send the difference by transfer, mobile money, gift cards or crypto. These are hard to pull back.
- The reversal. The original payment bounces, is flagged as fraud, or is recalled. Your sent money is gone, and you may owe your bank.
Sometimes there is no real work at all. Sometimes the scammer asks you to buy equipment from a "recommended seller", which is the same trick with a different story.
Variations to recognise
The vendor or equipment version
You are told to pay a supplier for software, a laptop, or "materials" and keep the balance as your fee. The supplier belongs to the scammer.
The refund version
A real client or a fake one pays, then says they cancelled and asks for a refund. The payment you are "refunding" later fails or is disputed. Refund only after you have confirmed the money is fully settled, and only to the original source.
The platform-bypass version
A "client" says the freelance platform's fees are too high and sends a direct payment, then overpays. Moving off the platform removes its dispute protection, so treat it as a warning sign. Our post on getting paid safely with milestones, deposits and escrow covers safer structures.
The fake screenshot version
You get a screenshot or PDF of a "successful transfer" but nothing has landed. Only your own bank or wallet balance and transaction history count. A receipt the client sends you proves nothing.
Red flags you can check in five minutes
- The client is in a hurry and will not do a call or video chat.
- They offer to pay more than your quote without negotiation.
- The job is vague, but the payment is large.
- You are told to send money to a third party, for any reason.
- They ask for payment by gift card, crypto or mobile money in return.
- Their email uses a free address while claiming to be a large company, or the domain is slightly misspelt.
- They say the money is "pending" and ask you to act before it clears.
- Their writing has odd details that don't match the company they say they represent.
A genuine client who overpays by mistake will accept that you return the money after it has fully settled, to the same account it came from. A scammer will push you to act now and to send it elsewhere. That reaction tells you everything.
A simple rule that blocks almost every version
Never send money to anyone in order to receive money. A real client pays you. You do not pay them, their vendor, or their "agent" first. This is the same logic behind the offers covered in fake freelance offers that ask you to pay first.
Add two supporting rules: do not spend or forward money until your bank or wallet confirms it as final, and never accept an overpayment you did not ask for without returning it the way described above.
A hypothetical worked example
Say you quote a client $150 for a logo. They send a payment that shows as $950 and write: "Sorry, typo. Please send $800 to my brand manager today, and keep your $150 plus a bonus." This is invented for illustration.
What you do:
- Do not send anything. Reply calmly: "I'll refund the extra to the original account once the full payment has cleared with my bank."
- Check with your bank or wallet provider whether the payment is final or still pending.
- If the client pushes you to use a different account or a faster route, stop replying and save the messages.
- If it later reverses, you have lost nothing but time. If you had sent $800, you would have lost that, in a currency that costs far more in naira terms than most freelancers earn on a typical job.
If you have already sent money
- Contact your bank or payment provider immediately, by phone or in the app, and report it as fraud. Speed matters; some recalls are only possible in a short window.
- Stop all contact except to save evidence. Take screenshots of chats, emails with full headers if you can, account numbers, receipts and the profile page.
- Report to the platform if you met the person there, so the account can be removed.
- Report to the authorities. In Nigeria, look up how to report on the official EFCC website, and also tell your bank. In other countries use your national police cybercrime unit or consumer protection body. Confirm contact details on their official sites, not from a message someone sends you.
- Do not pay "recovery agents". People who contact you offering to get the money back for a fee are usually running the next scam.
- Check your accounts. If you shared a BVN, ID or passwords, change passwords and talk to your bank. See also fake BVN update calls and phishing SMS.
Also expect that your bank may need to claw back the original funds from your account. Ask them directly what your position is, and be honest in what you tell them. Being a victim who reports quickly is much better than staying silent.
How to set up your work so this cannot happen
Before you accept the job
- Do a short call. Our guide to the first discovery call shows what to ask.
- Verify the company, the person and their role. The steps are in how to verify a foreign client.
In the contract and invoice
- State the exact amount, currency and payment method.
- Add a line: "Payment is for the agreed amount only. I do not pay third parties on behalf of clients."
- Invoice only what you quoted. If a client wants to pay more, they can pay a new invoice for extra work.
On payment day
- Count money as yours only when your bank or wallet says it is settled. Ask your provider how long each payment type takes to become final.
- Release files after payment, or work in milestones so you are never far ahead of what you have received.
Common mistakes
- Trusting a credit alert. A balance showing is not always final.
- Feeling rude about refusing. A polite no costs you nothing. Scammers count on your politeness.
- Keeping quiet out of embarrassment. Many careful people have been caught. Reporting helps the next freelancer.
- Chasing a big first job. When the first offer is oddly generous, slow down.
Frequently asked questions
Is it ever fine to refund an overpayment?
Yes, if the client is real and the money has fully settled. Return it to the same account or method it came from, and keep a record. Never send it to a different person or account.
Can a client send me money from a company account and ask me to pay a freelancer for them?
Treat it as the same scam. Legitimate agencies pay their own subcontractors.
How long until a payment is truly safe?
It depends on the payment type and provider. Ask your bank or platform directly, and check their official help pages.
What if the client is on a big platform?
Stay on the platform. Payment and messages inside it keep a record, and its support can act on reports. Requests to move to email or WhatsApp to "avoid fees" deserve suspicion.
Your next step
Open your invoice template today and add one line: you do not pay third parties on a client's behalf, and files go out after payment has settled. Then share the five steps of the scam with one freelancer friend who is just starting out.
Results from any side hustle or online work vary widely, and nothing here is a promise of income. Be wary of anyone who asks you to pay upfront to start earning.