If a customer claims to have overpaid on a purchase, what type of fraud could be suspected?

When a customer claims to have overpaid on a purchase, this situation can indicate a potential instance of refund fraud. Refund fraud typically occurs when someone tries to obtain funds for a purchase they never made, or seek a refund for a product they did not return or did not legitimately buy.

In this scenario, a claim of overpayment may be used as a tactic to manipulate the merchant into issuing a refund for the purported extra payment or to illicitly gain funds. This behavior can be indicative of a strategy where the fraudulent individual seeks to benefit financially inappropriately by exploiting refund policies.

Understanding refund fraud helps businesses establish stronger protocols and verification measures for refunds, ensuring that they are processing legitimate claims and protecting themselves against financial loss due to such fraudulent activities.