The “overpayment” scam is back and not just for consumers or businesses, but also nonprofits. BBBs nation-wide are reporting and issuing an alert on a “Ken McFarlane” or “Kenneth McFarlane” who contacts nonprofits with five-figure donation checks.
This classic scam has been around for a while. A scammer sends a check or PayPal wire to you, but then says that they “overpaid.” They then ask you to re-send or re-wire the overpayment to another account, usually giving them access to your bank information and more. From there, the scammers can take all of your money, not just the amount you “sent back.”
As of the end of January, a couple of nonprofits in Virginia have been targeted by McFarlane and the overpayment scam. Each received a check and deposited a total of over $39,850 only to be contacted again by McFarlane to return $10,000 as soon as possible. The checks turned out to be worthless. Since, many other nonprofits have come forward to report a similar experience.
Had these nonprofits followed through with the request, they would have lost a significant amount of money. Nonprofits have reported complications from the scam, including bank fees associated with depositing a fraudulent check.
The name and contact information in the emails received in Virginia mirrors an architectural firm in the United Kingdom. The scam artists have copied the UK firm’s website in an attempt to legitimize themselves.
BBB offers the following advice to avoid an overpayment scam:
- Know who you’re dealing with. In any transaction, confirm the buyer/seller/donor name, street address and telephone number.
- Don’t wire. Never under any circumstances wire funds back to the person, a legitimate buyer/seller/donor will not insist upon this type of request.
- Never assume that a check is legitimate, even if it’s a cashier’s check. It may take weeks for a financial institution to learn that it is counterfeit.
- Never accept payment for more than the purchase price of a product or service.
- Keep in mind, you are the party who is ultimately liable to your financial institution. Verify all checks, as well as certified checks, with the issuing financial institution.
BBB urges any consumer, business or nonprofit that receives such emails not to respond or engage in any way. If you receive a check, do not deposit it and report your experience to your BBB.