PayPal is the most used and well-known online payment system in the world. Users can make purchases or pay bills conveniently since most online commerce entities recognize the platform giant. However, with this transactional convenience comes risks, and even PayPal is not immune from would-be scammers. PayPal scams happen despite the company’s and its users’ best efforts to avoid them. Worse yet, the odds of being scammed increase as thieves become more sophisticated in their methods to dupe consumers.
In this article, we discuss advice to keep your bank accounts safe and avoid being taken by today’s PayPal scams.
Common PayPal Scams
Keep your PayPal transactions safe by recognizing the different types of scams that tend to be more prevalent today. Learn how to spot these tactics quickly, so you know when to “delete” instead of respond.
Phishing
The most common method of scamming is phishing. Phishing emails are very convincing, with scammers spoofing legitimate email addresses or phone numbers. The idea is to scare consumers into sending money with threats of imprisonment, bank account freezing, or other strong-arm tactics to get worried consumers to send over their data or hard-earned cash.
Fake Payment Notifications
Another method scammers use involves fake payment notifications. They send an email thanking the recipient for their payment, even using the last four digits of their credit card or social security number. They will provide a number to call if this is in error, which lures the consumer to contact the company. Once contact is made, the scammers quickly convince them to give up their credit card number to rectify the situation. If successful, they hack the bank account or credit card.
Overpayment PayPal Scams
Overpayment scams involve a PayPal buyer who accidentally sends an overpayment for an item you may be selling. The buyers request a refund of the difference, but their original payment eventually bounces, leaving you with a significant deficit in your account.
Fake Invoicing Tactics
It’s not uncommon for consumers to keep money in their PayPal accounts. Scammers count on this and may send fake invoices demanding payment for items never purchased. If left unpaid, these invoices threaten to extract money from the account. A convincing yet malicious link is included in the invoice, enticing users to click on it and pay it.
Shipping Address Scams
Shipping address scams are another favorite scheme used by scammers. They purchase a product and give the seller an incorrect shipping address. Then, they contact the shipping company to correct their address and file a PayPal claim stating the merchandise was never received. So, the scammers receive the merchandise and get a refund, basically stealing from the seller.
General Tips to Protect Yourself from PayPal Scams
Explore these common best practices to protect your account from the latest PayPal scams.
Verify Emails Before Clicking
When purchasing via PayPal, make sure the email links are legitimate. Hover your mouse over the link. The corresponding email address should pop up but don’t click on the link if it doesn’t. Logging in directly to the website is good practice rather than clicking on links, too. If you manually type the address, the browser will go directly to the PayPal site.
Maintain a Strong Password
A strong password is a tried-and-true method of foiling scammers’ attempts to steal your money. Use a healthy mix of upper- and lowercase letters, numbers, and symbols when crafting a strong password. Take advantage of 2FA (2 Factor Authorization) for an extra layer of protection. 2FA will send a code to your email or text messaging app to confirm your identity.
Keep Your Virus Protection Software Updated
Ensure that virus protection software and other applications are up to date. Check for updates frequently or adjust your settings for automatic updates. By keeping software current, your computer or phone has the digital protections to stop scammers before they can access your accounts with PayPal scams or other tactics.
How to Identify a Potential PayPal Scam
- Poor grammar and urgency: Emails with typos or messages that pressure you to act immediately are red flags.
- Suspicious payment requests: Be wary of buyers or sellers requesting payment as “Friends and Family” to avoid fees.
- Requests for personal information: PayPal never asks for sensitive details about you, like passwords or Social Security numbers via email.
Seller-Specific Tips
- Ship to verified addresses only: Avoid shipping items to unverified addresses or making exceptions for buyers.
- Track your shipments: Use your tracking numbers to prove delivery and protect yourself against those “item not received” claims.
- Watch out for overpayments: If a buyer overpays, investigate before issuing a refund to avoid chargeback scams.
Buyer-Specific Tips
- Only buy from trusted sellers: Look for reviews and verify the seller’s credibility before making payments.
- Avoid off-site payments: Always complete transactions on PayPal’s platform to leverage its buyer protection.
- Beware of unrealistic deals: Offers that seem too good to be true often are. So, double-check their legitimacy.
Steps to Take If You Suspect a Scam
Despite your best efforts to protect yourself from PayPal scams, you might get duped. If you believe you’ve been taken or fallen victim to a scam, there are a few steps you can take.
- Report it to PayPal: Use PayPal’s Resolution Center to report suspicious activity or unauthorized transactions.
- Freeze your account: Change your password and alert PayPal immediately if you think your account is compromised.
- File a police report: For significant financial loss, notify local authorities for further investigation.
Trusted Tips About PayPal Scams & Anti-Fraud News Blog
Remember these tips when using PayPal to safeguard your money. Verifying a buyer or seller on PayPal only takes a few extra steps, but it may take weeks or even months to straighten out if you get scammed. With these insights, you can learn to spot scammers and report them easily. And you can carry on with using your PayPal account as intended, with all its conveniences and benefits.
Keep up with the latest PayPal scams and fraudulent online practices right here with Antifraudnews.com, a proud member of the Anti-Scam Alliance. Share the Anti Fraud News blog with your circle of friends and family to spread the knowledge of how to protect yourself and your money.