Payment arrives
Seller receives a convincing bank draft for $80,000 although invoice is $50,000.
Case study · Practitioner
Case: Counterfeit Bank Draft and Overpayment
A buyer sends a bank draft for too much and asks the seller to refund the difference immediately.
Deposit
Seller deposits it; online balance appears to increase.
Pressure
Buyer says the excess $30,000 was an error and demands urgent wire refund.
Independent check
Seller calls its bank and the purported issuing bank using independently sourced details.
Problem found
The draft is counterfeit. The deposit credit was provisional.
Return
Original deposit is reversed/returned unpaid.
Avoided loss
Because seller did not send the refund, it avoids losing $30,000 of real money.
What this case teaches
- Provisional credit is not the same as final settlement.
- Bank names/security printing can be forged.
- Overpayment plus urgent refund is a classic risk pattern.
Work the case like a practitioner
Before looking only at the outcome, separate the instrument from the surrounding transaction. Use these questions every time.
Instrument
What undertaking, payment method or document is actually involved?
What undertaking, payment method or document is actually involved?
Rules & deadline
What rules, expiry, maturity or presentation deadline controls the next step?
What rules, expiry, maturity or presentation deadline controls the next step?
Evidence
Which facts are independently verified and which are only counterparty claims?
Which facts are independently verified and which are only counterparty claims?
Bank action
What must the bank authenticate, approve, examine or settle?
What must the bank authenticate, approve, examine or settle?
Remember: a case illustrates a method of thinking. A real bank may require different documents, approvals or procedures.
Case check0 / 1 answered · 0 correct
Check 1
What should the seller wait for before refunding an alleged overpayment?