Delores Reed was a longtime PayPal user. So when she got an email about fraudulent activity on her account, she quickly clicked on the link to update her password [*]. Show
Only PayPal didn’t send her the email — scammers did. And once they gained access to her PayPal account, they emptied out hundreds of dollars. Dolores is not the only person to get scammed by an online payment method like PayPal. By 2023, e-commerce losses due to online payment fraud is expected to reach $48 billion [*]. Getting scammed on PayPal is a nightmare situation. Even if you don’t fall for a phishing scam, you could receive a fake product, pay for an item that never arrives, or be targeted by the many other types of scams that use PayPal. And while PayPal’s payment protection can help keep you safe, it doesn’t guarantee you’ll get your money back if you get scammed. And its protection features can’t help you if a scammer steals your identity. So, what should you do if you get scammed on PayPal? And what common PayPal scams should you be looking out for? Is It Safe To Use PayPal?Yes, PayPal is a secure way to send and receive money. While no payment platform can claim to be 100% secure, PayPal spends millions on digital security measures to protect its users — from SSL data encryption to stop hackers from intercepting payments to fraud monitoring and security keys (their version of two-factor authentication). But scammers know that no amount of digital security can protect against you getting tricked. PayPal scammers use phishing emails, social engineering attacks, and other classic scams to fool you into disclosing personal data or paying for fraudulent goods. A scammer might:
These are just some of the many ways that scammers can steal your money, personal information, or more by using PayPal. ✅ Take action: If scammers have your email address, your bank, social media, and online accounts could be at risk. Try Aura’s #1-rated identity theft protection free for 14 days to secure your identity against scammers. Don’t Get Scammed! How To Protect Yourself From PayPal ScamsPayPal is one of the more secure payment apps out there. But that doesn’t mean it’s always safe to use. Make sure you follow these best practices whenever you use PayPal:
Related: What To Do If You’ve Been Scammed Online & How To Report It → Were You Scammed on PayPal? Here’s How To Get Your Money BackThe bad news is that both buyers and sellers can get scammed on PayPal. The good news is that PayPal has policies in place to protect you against most types of fraud. Depending on the type of scam, you can try to get your money back by:
How to cancel a pending payment if you think you’re being scammedIf your transaction is listed as “pending” (meaning your payment hasn’t yet been processed), you can cancel it and get a refund. Here’s how to cancel a pending payment:
Unfortunately, most scammers will accept your payment right away. So what do you do in that case? How to use PayPal’s Purchase Protection programWhen you buy an eligible item, PayPal’s Purchase Protection will fully reimburse you if the order doesn’t arrive or the product doesn’t match the seller’s description — as long as your account and the transaction fall within their guidelines. Your first step is to file a dispute with the seller. You have 180 days after the purchase to make a dispute. If the seller doesn’t respond or you can’t resolve the issue, here’s how to make a claim with PayPal:
How to use a chargeback to get money back from a PayPal scamIf you paid on PayPal with a credit card or your bank account, you could also utilize chargebacks to get a refund. Inform your bank about the fraudulent transaction and request a chargeback. PayPal freezes the amount in the seller’s account when a request is received for a chargeback, pending what your bank decides. Most credit card companies and banks require you to initiate the chargeback process within 60 days of the transaction. Related: The 14 Latest PayPal Scams (and How To Avoid Them) → Did Someone Hack Your PayPal and Steal Money? Do This!Many scammers don’t want to scam you out of a single payment — they want to access your entire PayPal account (and any bank accounts or credit cards that you have linked to it)! If a scammer stole your password or hacked into your account, you can file a case with PayPal. Here’s how:
You should also take steps to secure your PayPal account. Update your password and security questions and enable two-factor authentication (2FA) right away. If a scammer has access to your PayPal account and has locked you out, reset your password, and then alert your bank and the three major credit bureaus — Experian, Equifax, and TransUnion — of possible fraud. ✅ Take action: If scammers get your sensitive personal data from a data breach, they could take out loans in your name or empty your bank account. Try an identity theft protection service to monitor your finances and alert you to fraud. The 11 Worst PayPal Scams You Need To Know AboutScammers are always finding new ways to steal your money and personal information. Here are tips to identify — and avoid — the latest PayPal scams. 1. Advance payment or fee fraudAdvance fee fraud is a common PayPal scam in which fraudsters promise money or services in return for a small upfront payment. But if you pay them, the promised goods either never arrive or the scammers keep pushing for more money. The classic version of this scam is someone claiming to have access to a large inheritance — they just need your help (and money) to gain access to it. Lately, scammers have been sending emails that look like legitimate PayPal emails showing money being deposited into your account. But there’s “security issues” to resolve or “charges” that need to be paid first. Scammers will ask you to pay “fees” in exchange for free money. Source: RedditHow to identify a PayPal advance fee scam:
Don’t get scammed! Do this instead:
Watch out for the latest version of this scam. Fraudsters have taken advantage of the COVID-19 pandemic to offer “expedited stimulus checks” — for a small fee. Americans have lost over $827 million to phony stimulus payments and other COVID-19 scams, according to the Federal Trade Commission (FTC) [*]. Don’t believe anyone who claims they can get you a stimulus check for a fee. 2. Phishing emails that look like they’re from PayPalPhishing attacks — in which fraudsters pretend to be from a company or organization that you trust — are among the most common PayPal scams. There are a few variations of PayPal phishing scams, but most of them follow a similar pattern. First, scammers create emails that look like they’re coming from PayPal. They’ll even use “domain spoofing” so that the email address (“From name”) looks like it’s either from PayPal or a related sender, such as “PayPal Resolution Center” or “PayPal Customer Support.” Example of a PayPal phishing email in which scammers changed their name to “[email protected]” to try and trick users.The message will use urgency or threatening language to get you to act. Some common examples of PayPal phishing schemes include claims such as:
Some phishing emails will even infect your device with malware — malicious software that searches for sensitive information and sends it back to the hacker. How to identify a PayPal phishing scam:
Don’t get scammed! Do this instead:
3. Overpayment scams when selling itemsAn overpayment scam happens when a buyer overpays for an item and then requests a refund through another account. What seems like an innocent mistake is really a fraudster spending money from a stolen credit or debit card or a hacked PayPal account. Upon receiving the “refund,” the scammer will cancel the original transaction — and you lose the cost of the sale plus the overpaid refund. As a seller, you’re also at risk of losing your good standing when the real cardholder reports the fraud and you have to refund the purchase amount. How to identify an overpayment scam on PayPal:
Don’t get scammed! Do this instead:
Related: How To Tell If Someone Is Scamming You Online → 4. Invalid shipping address scamWith a shipping address scam, fraudsters use an invalid delivery address on the order. The shipping company can’t find the address, so they mark it as undeliverable. Next, the scammer contacts the delivery company and provides a new address for the package delivery. But because the shipping company already marked it as undeliverable, the scammer can file a claim with PayPal that the item didn’t arrive. How to identify an invalid shipping address scam:
Don’t get scammed! Do this instead:
✅ Take action: Protect yourself from the risks of identity theft and fraud with Aura’s $1,000,000 in identity theft insurance. Try Aura free for 14 days to see if it’s right for you. 5. Fake tracking numbers for online purchasesIn this scam, fraudsters use stolen tracking numbers to either ship the wrong (and much cheaper) items or not send them at all. Cybercriminals create fake online stores that offer PayPal checkout to build trust. Customers make purchases and receive tracking information — but what arrives isn’t what they ordered. Unfortunately, because the seller can show that the item was delivered, PayPal denies the buyer’s refund claim. In another version of this scam, fraudsters will ship the item to the wrong address. When customers try to return the order or get a refund, the website either doesn’t provide the option or is unresponsive. How to identify a fake tracking number scam:
Don’t get scammed! Do this instead:
Related: How To Shop Online Safely (Without Getting Scammed) → 6. Phishing websites that look like PayPal login pagesScammers create fake PayPal login pages that are nearly impossible to distinguish from the real thing. They use the same design and will even use domain names that look like they could plausibly be connected to PayPal. One example of a fake PayPal login page. Source: The SSL StoreBut if you enter your account information and passwords, you’ll end up with an error screen. While you try to figure out what’s going on, scammers are busy emptying your account or locking you out of it. Phishing sites like this have become a massive problem in the past few years. The Anti-Phishing Working Group (APWG) detected over 400,000 unique phishing sites in September of 2022 alone [*]. How to identify a fake PayPal login page:
Don’t get scammed! Do this instead:
7. PayPal text message scamsA more recent scam involves fraudsters sending fake text messages claiming to be from PayPal to “verify” a payment that you didn’t make. The message will say you only have 30 minutes to dispute the charge and ask you to click on a link (which is shortened or scrambled so that you don’t know where it leads). An example of a PayPal phishing text message.But if you click on the link in the message, it will either take you to a fake PayPal login page or infect your device with malware. How to identify a fake PayPal text message scam:
Don’t get scammed! Do this instead:
Related: 10 Text Message Scams You Didn't Know About (Until Now) → 8. Charity scams that collect donations through PayPalOne of the most insidious PayPal scams uses fake charities to hijack donations from generous individuals. For example, scammers might set up a fake GoFundMe or PayPal donation link in response to a natural disaster or trending event. They’ll even create a fake charity website or scam Instagram page to make the lie believable. How to identify a fake charity PayPal scam:
Don’t get scammed! Do this instead:
9. Sellers asking to use “Friends and Family” paymentsPayPal only offers buyer protection on transactions tagged as a purchase — not ones that you send using the “Friends and Family” option. Scammers on platforms such as Craigslist or Facebook Marketplace will often try to get you to use “Friends and Family” by claiming that it avoids fees (it does) and that it’s safe (it isn’t always). But if you make the purchase this way, the seller can disappear without sending you the item and you have no recourse other than a credit card chargeback. How to identify a “Friends and Family” scam:
Don’t get scammed! Do this instead:
10. Fake PayPal invoicesIf you regularly handle invoices as part of your job, you’re probably used to paying companies or contractors by using PayPal. In this scam, fraudsters send official-looking PayPal invoices for fake work, products, or contracts. The goal is that you’ll assume the invoice is legitimate and pay it without thinking. They may disguise the invoice as coming from a real company or organization — such as GoDaddy or The World Health Organization (WHO). How to identify a PayPal fake invoice scam:
Don’t get scammed! Do this instead:
How To Prevent Getting Duped by PayPal Scams
|