Refund fraud is a scam that uses a fake refund, overpayment, or reimbursement process to steal money or collect sensitive information. Attackers often pose as a trusted company, bank, or support desk and create a sense of urgency so the target will “verify” account details, approve a payment reversal, install software, or grant remote access.
In cyber security, refund fraud matters because it blends social engineering with financial theft. The attacker may use phishing pages, spoofed emails, or fake browser alerts to make the claim look legitimate. Once trust is established, victims can be tricked into sharing banking information, disabling security tools, or sending money to a fraudulent account. Defenses focus on verification: use known contact channels, never trust refund requests that demand remote access or immediate action, and confirm payments directly with the provider before taking any step.