Beware the Holiday ‘Overpay-and-Refund’ Scam

A holiday-weekend “mistake donation” turned into a costly scam for one church when a fraudulent donor pressured staff into issuing a partial refund before the original gift cleared.

Not all generosity is genuine. 

When someone donated $2,000 online to a church on a holiday weekend, the donor soon after contacted the church and claimed the donation should only have been $20.


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They demanded a refund of the difference.

Exploiting trust, timing, and natural helpfulness

It all happened at an inconvenient time.. The church office was closed for the holiday. 

So, rather than wait, the individual began contacting various church staff members directly, hoping someone would bypass normal protocols and issue the refund. 

This put undue pressure on the team, especially those not involved in the church’s finances.

And because the online gift had been made but had not yet been cleared, someone at the church approved the $1,880 refund. 

Days later, the original online payment failed to clear. The church lost the refunded amount. 

And they weren’t alone. They were one of several victims of a larger scam that exploited trust, timing, and the natural responsiveness of ministry teams.

The person behind the scam went to federal prison for a pattern of similar fraudulent activity across multiple organizations. 

While justice was ultimately served, the experience offers valuable lessons for churches.

Churches make easy targets

Churches are often targets for financial manipulation. Their culture of trust and generosity, combined with decentralized communication across ministry teams, can create opportunities for bad actors. 

Holidays and weekends increase this vulnerability when financial staff are unavailable and the pressure to respond quickly is high.

How your church can protect itself

To protect churches from similar incidents, the following safeguards are recommended:

  1. Do not issue refunds until the funds have fully cleared. Even when the story sounds credible, timing is critical. Waiting protects both the church and the donor. Even if the money has cleared, issue the refund the same way the gift was made to the same card or bank account as the gift.  Restrict financial transactions to designated personnel. Staff outside the finance team should not handle giving corrections, refunds, or check verifications. All such requests should be redirected appropriately.
  2. Avoid processing financial changes outside of office hours. Set clear boundaries around when and how financial matters can be addressed. Emergencies are rare and should be treated with caution.
  3. Educate your team on manipulation tactics. Scammers often use urgency, emotional pressure, and multiple contact points to bypass safeguards. Training your staff to recognize these signs is an essential part of financial stewardship.
  4. Implement a response protocol for holiday weekends. If donor services must remain available during closures, assign one trained person with clear limits and accountability to handle inquiries.

Stewardship is not only about handling resources wisely. 

It is also about building systems that honor integrity, protect staff, and preserve trust. 

Even a single incident of fraud can impact morale, operations, and the public witness of a congregation. By holding financial boundaries with compassion and strength, churches safeguard not just their accounts–they safeguard their calling.

Tim Samuel is a CPA and the chief financial officer of Bridgeway Community Church, a nondenominational, multicultural church in Columbia, Maryland, that draws more than 4,000 people each week.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

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