How does the fake check overpayment scam work on landlords?

How the overpayment scheme runs

The scam appears in many forms, but the pattern is steady. The sender picks a rental, often one that has been advertised for a few days, and shows strong interest without asking to see the unit. A few messages later, a check arrives. It might be from a company or from a person who is "overseas" or "paying through an employer." The amount is higher than what you asked for.

1. The sender "accidentally" overpays, or explains that the extra covers a moving company, a "relocation agent" or a pet fee.
2. You are asked to deposit the check and send back the difference by wire, a payment app or a gift card, and to do it fast.
3. Your bank makes the funds available within a day or two, so your balance looks fine.
4. Days or weeks later, the bank discovers the check was counterfeit and takes the whole amount back out of your account.

The key trap is the gap between "funds available" and "check cleared." A bank must make deposited funds available on a set schedule, but that does not mean the check is good. The FTC's page on fake check scams says that a check can be counterfeit even when the bank has released the money, and that you are responsible for the deposit if it bounces.

Warning signs on a rental inquiry

• The sender has not seen the unit and does not ask to see it.
• The payment exceeds the amount you quoted, and the explanation changes if you question it.
• You are asked to return money by wire, gift card, cryptocurrency or a payment app.
• The sender pushes for speed, or says a third party will "handle" the transfer.
• The check is from someone other than the applicant, with no stated reason.
• Messages contain odd phrasing, generic greetings or a mismatched email name.

One of these alone is not proof. Several together are a reason to stop.

How to take payment from a new tenant safely

1. Collect the application fee, deposit and first month only after the applicant has toured the unit, passed screening and signed.
2. Take the exact amount. If a check arrives for more, return the whole check and ask for a new one for the right amount. Do not deposit it first.
3. Prefer a payment method that is traceable and verified by your bank or rent platform, and tell applicants in writing how to pay.
4. If you do deposit a check, wait until your bank says it has fully cleared, and ask the bank how to confirm that. Do not send money out against it.
5. Never give back "extra" money in a form you cannot reverse, such as a wire, a gift card or crypto.

If you already sent the money

Call your bank right away and explain what happened. Ask whether the transfer can be recalled, which works only if you act quickly. Report the scam to the FTC at ReportFraud.ftc.gov and to the FBI's Internet Crime Complaint Center at ic3.gov. Keep the check, the envelope and every message. If you gave out account details, watch the account and consider changing it.

Then record the loss correctly in your books. The reversed deposit and the money you sent out are not rent, so keep them in their own lines and talk to your accountant about how to treat the loss.

DoorKeeping tracks each tenant's ledger and each deposit, so a payment that was reversed shows plainly as reversed instead of staying counted as rent.

Sources

1. FTC, What To Know About Fake Check Scams, read Oct 30, 2026
2. FBI, Common Frauds and Scams, read Oct 30, 2026
3. FBI Internet Crime Complaint Center (IC3), read Oct 30, 2026

Questions

Why does the bank take the money back if it was available?

Funds being available is a banking schedule, not proof the check is good. If the check turns out to be counterfeit, the bank reverses the deposit and holds you responsible.

What should I do with a check for too much?

Do not deposit it. Return it and ask for a new check in the exact amount.

Where do I report a rental overpayment scam?

Report it to the FTC at ReportFraud.ftc.gov and to the FBI's IC3 at ic3.gov, and tell your bank.