Houston Car Sellers: Spot the Fake-Check Overpayment Scam

The short answer

If a "buyer" sends you a check for more than your asking price and asks you to send back the difference, it's a scam. The Federal Trade Commission (FTC) warns that fake checks look real, the money can even show up in your account, and it can take the bank weeks to discover the check was fake. When that happens, you repay the bank. Houston sellers should never release a car, title, or refund based on a check they can't verify.

How the overpayment scam works

In its alert, Fake check scam targets online car sellers (Feb. 27, 2025), the FTC describes the pattern:

1. Someone messages you saying they want to buy your car.
2. They say they aren't local and can't see it in person.
3. They send a check as a "deposit" to hold the car, for more than you expected.
4. They say they "accidentally" overpaid and ask you to send the extra back.
5. If you do, the "buyer" and your money are gone.

Why the funds showing up doesn't mean you're safe

The FTC's guide on how to spot, avoid, and report fake check scams explains why this works:

• Fake checks generally look just like real ones, even to bank employees. They may be printed with the names of real financial institutions.
• By law, banks have to make deposited funds available quickly. Seeing the money in your account doesn't mean the check is good.
• Fake checks can take weeks to be discovered. By then the scammer has whatever you sent, and you owe the bank.
• Fake checks can look like personal checks, business checks, cashier's checks, money orders, or checks delivered electronically.

FTC rules to follow as a Houston seller

From the FTC's car-seller alert and fake-check guide:

• Don't accept a check for more than the selling price. The FTC says you can bet it's a scam.
• Never send money back to anyone who says they overpaid you by check.
• Never use money from a check to buy gift cards, money orders, or cryptocurrency, or to wire money to anyone who asks. The FTC says once you do, it's like handing over cash.
• Don't rely on money from a check unless you know and trust the person you're dealing with.
• Consider an escrow or online payment service if you're selling a car online.

Red flags before anyone shows up

• A buyer who won't see or inspect the car but wants to "lock it in" right away
• A deposit for more than your price, followed by an urgent refund request
• Pressure to use gift cards, crypto, or a wire transfer
• A story about a shipper, agent, or relative who will pick up the car later

Protect the paperwork too

Payment isn't the only risk. When a legitimate sale does close, TxDMV says sellers should give the buyer a properly signed title with the date of sale and odometer reading, plus a signed Form 130-U showing the sales price. TxDMV also tells sellers to file a Vehicle Transfer Notification within 30 days. See TxDMV's Buying or Selling a Vehicle page for current requirements.

Keep the title in your hands until payment is truly final. A signed title plus a bounced check is the worst of both.

If you think you've been targeted

The FTC asks people to report fake check scams at ReportFraud.ftc.gov. If you already sent money, the FTC's fake-check guide explains what to do based on how you paid. Speed matters for gift cards and wire transfers.

A calmer way to sell in Houston

Many sellers choose a business buyer over strangers online because it cuts down the back-and-forth over payment. Sell My Car Houston serves the Greater Houston area with cash-offer requests through the site form. Whichever buyer you choose, the FTC's basic rule still applies: don't send "change" back on any check.

Takeaway: An overpayment plus a refund request is the scam. Don't accept checks above your price, don't send money back, and keep the title until you know you've been paid.