What is an overpayment scam? An Alberta homeowner and her 9 metre-tall tree found out the hard way

“At the end of the day they got scammed too,” she said. “I just think they were very trusting. And that’s the unfortunate part of society.”

This wasn’t a one-off

The Canadian Anti-Fraud Centre (CAFC) told CTV News it has received two reports since May involving tree-removal businesses targeted in similar schemes. In one, scammers tried to use a fraudulent electronic cheque and obtain online banking information before the business grew suspicious. In another, two tree-removal businesses were sent to the same property on consecutive days after scammers used a photo from a real estate listing.

Overpayment scams fall under the umbrella of impersonation fraud, which, according to an Equifax survey, is a cause of significant stress for Canadians, with 67% of citizens being most worried about falling victim to identity theft and impersonation.

How to spot and avoid this form of fraud

Harder learned a valuable lesson by falling prey to this scam. “I’m going to be a lot more vigilant,” he told CTV. “Sort of like, ‘Are you actually the homeowner?’ And probably stop doing quotes by pictures,” he said.

Knowing the distinct warning signs of an overpayment scam is the best way to protect yourself from being similarly victimized. Be on high alert if:

• A payment is received for more than the agreed-upon amount, which a scammer may argue was a mistake or offer explanations such as shipping costs, agent fees or account errors
• There is pressure to return the funds quickly, before a payment can be properly verified, especially through cheque
• The victim is instructed to refund the overpayment using hard-to-recover methods such as e-transfer, wire transfer, gift cards or cryptocurrency
• The buyer or client is unable to meet in person prior to the service being performed

Canadian homeowners can take certain steps in order to safeguard their finances, and their properties, from this type of fraud:

• Confirm any unexpected service request, cancellation or ‘did you text this’ question directly
• Ask a neighbour or property manager to check in if you’re away and no work should be happening at your home
• Report suspicious requests to the CAFC and your local police