Over payment fraud is commonly known as what?

• A. A standard card present fraud
• B. aka payout scam, fraudulent actor presents themselves as requiring the services of a third-party in connection with the purchase. they pay an additional tip for accommodating the request.
• C. When a customer uses a valid payment method
• D. When a merchant transfers funds back to customer

Answer: (B)

Over payment fraud is commonly known as a payout scam. In this type of attack, a fraudster makes a payment that appears legitimate but overpays and then asks for the difference to be refunded, usually directing that refund to a third party. The attacker may pose as needing a third party’s services for the purchase and even offer a small tip to make the request seem convincing. The danger is that the merchant ends up refunding funds to the fraudster or an accomplice, believing they’re correcting a mistake, while the original payment remains fraudulent. This is distinct from normal legitimate transactions or simple refunds to the original payer, and a key defense is to verify refund destinations and avoid sending money to third parties you cannot independently verify.