There’s no doubt that PayPal is one of the most widely used online payment platforms today.
As a result of its international renown, it has become a frequent target for cyber and hacker criminals who are constantly looking for new victims.
The chances are good that you’ve been the victim of a PayPal scam in the past.
So, if that’s the case, you must have gained some insight from experience.
Knowing the most frequent forms of PayPal Scams and what you can do to avoid them is critical to protecting yourself from them.
Fact: Each day in 2019, the FBI received around 1,300 complaints from individuals and businesses alike, resulting in losses of more than $3.5 billion for both individuals and businesses.
In addition to non-payment and delivery issues, “PAYPAL SCAMS” were among the most frequently reported problems.
Even though no one wants to be a victim, hackers are continually striving to stay one step ahead of the public due to the constantly evolving methods.
Payment processor PayPal was the most often targeted cybercrime victim, followed by Facebook and Microsoft.
Phishing attacks on PayPal are carried out successfully on a daily basis and the decrease in the number of phishing attacks against PayPal was more than offset by a 23 percent increase in the volume of transactions processed by PayPal.
Note: Customers in the United Kingdom lost more than $1 million as a result of PayPal fraud during the fourth quarter of this year.
List Of PayPal Scam - Examples That Will Blow Your Mind
Examples of PayPal Scams are stated below:
1. Scam With A Shipping Address On PayPal (Worst Scam Uncovered)
In this scam, the fraudster requests that the things be delivered to a specified address, and as a result of this request, money is paid into our account. You are responsible for delivering the item to the specified location.
Because the delivery address provided by the customer is inaccurate, the shipping business cannot deliver the items.
They mark the item as undeliverable in their system after multiple futile attempts to deliver it. The fraudster calls delivery service providers and provides them with the new address to which the products should be delivered in order to complete the fraud.
The fraudster submits a PayPal complaint, claiming that “the merchandise did not arrive.”
Because the transaction data includes the recipient’s address, it is difficult to determine whether the package was delivered.
As a result, because PayPal Seller Protection only protects the delivery address that PayPal has on file for you, you would lose not only the things purchased but also the money that you paid for them.
2. Scammers Use PayPal To Defraud People
The fraudster deposits more money into your bank account than the item’s actual price, and then disappears.
They blundered by requesting to transfer the money into their personal bank accounts instead.
The fact is that the fraudster overpays for the item, and the money has been deposited into your bank account as a result of his actions. Because of this, the fraudster files a PayPal complaint, claiming that “their account was compromised and that they had no intention of reimbursing the overcharge”.
PayPal reimburses them for the amount of the “overpayment” you made to their bank account, and you are responsible for the difference between the two amounts.
3.The Use Of A Phony Email Account
When you receive an email from PayPal, it appears that the cash has been sent to your account. Eventually, PayPal will hold the payments until you provide a “Tracking Number” for your package’s shipping.
What you should know is that PayPal is not an escrow service, and it does not handle client money, shipping addresses, or tracking numbers in any way. It is, in fact, a ruse to trick you.
Scammers take advantage of this by tricking you into shipping the products to them immediately and then emailing them the tracking number. So, the scammer attempts to extract as much money from you as possible.
They claim, “Your suggestion has been adopted, and it is too late to back out now.”
4. Scams Phishing Email Scam Using PayPal
You will receive an email from PayPal informing you that funds have been deposited into your account, and you can access them by clicking on a confirmation button.
The “confirmation” button takes you to a bogus PayPal-looking page, where you are required to input your username and password before the “confirmation” button would work.
As soon as you enter your login and password on the bogus website, the scammer has your username and password, allowing him or her to get access to your actual account and make payments or withdraw funds from it at will.
5. The PayPal Scam That Was Eventually Identified
PayPal emails you confirming that money has been deposited into your PayPal account. After checking in, you will have immediate access to the funds you earned. You are the one who is responsible for shipping the products.
PayPal contacts you several weeks later to inform you that funds in your account have been fraudulently removed.
Scammers, such as those involved in the phishing scam, get access to other people’s bank accounts and use those accounts to make purchases of products and services on their behalf.
The possibility of receiving your money back if PayPal detects that your account has been compromised exists, depending on the circumstances.
6. Email Scam In Which The Sender Claims To Be A Representative Of Your Bank
The majority of people have been victims of this fraud at some point in their lives. It’s a hoax email purporting to be from a PayPal representative, informing you that your account has been compromised.
It is possible that you will be asked to make changes to your account in order to avoid performing unneeded tasks.
When they offer you a link to your PayPal account, they will typically redirect you to another website where they will steal important information from you or move your funds to their account.
Here is an example of a fraudulent email that is being sent out.
“We’ve discovered a few weaknesses in our network that need to be addressed. As a result, our personnel made the decision to switch to a new system.
Please be advised that we have made it mandatory for everyone to keep their personal information up-to-date. If you do not take action immediately, your account may face significant difficulties in the future. Using this false PayPal connection, you can make changes to your profile.
If you have any questions or concerns prior to receiving this email, please contact our customer service department, which is open 24 hours a day, seven days a week.”
What Should You Do If You Know You Are Being Scammed on PayPal? (Warning Signs)
Do not click on the link in the email you got. It is dangerous. Make sure the link is active by hovering your cursor over it and looking at the URL in the lower-left corner of your screen to make sure it redirects to the PayPal website.
The URL is normally visible on this portion of the screen even if you do not actually click the link.
You can verify its legitimacy by going to PayPal’s website and searching for notifications relating to an account issue or a profile change.
Never click on a link in an email if you want to acquire access to your PayPal account. This is a terrific deal / You’ve just been awarded a prize.
A frequent approach used by fraudsters to reach their targeted victims is to email them with a link that directs them to a fraudulent website that is designed to gather whatever personal information you enter on it.
Take A Look At This Ad Spoof For Your Entertainment
These days, they’re also posting spoofs on social media platforms. When they want your attention, they’ll pretend to be selling something or to be providing a great deal on something.
Always double-check the URL of a website before entering any personal information on the site. The likelihood of a scam is higher when using a website other than the official PayPal website.
- This website is not affiliated with PayPal, despite the fact that the URL contains the word “PayPal.” The names “co.uk” for the United Kingdom and “co.eu” for Europe are not used by PayPal because they are considered to be generic.
- The design of PayPal’s website can also be used to determine the overall quality of the service. In terms of grammar and spelling, everything in the text on the website is correct.
- The photographs and graphics are of good quality, and they are consistent with the brand’s colors and theme throughout.
- It is possible that a fraudulent website will contain grammar problems, misspell words, and low-quality images.
Scammers Are Simply Avaricious When It Comes To Their Methods - Charity Scams / Investment Frauds
When it comes to situations like PayPal Scammers, they are willing to take a chance by toying with your emotions and decision-making abilities. They are able to steal from benevolent and well-intentioned individuals by disguising themselves as charity organizations.
Because of the pandemic, scammers are taking advantage of the situation to solicit cash for a variety of causes ranging from orphans who have lost their parents to food banks that feed the destitute to people who are in need of medication but cannot afford it.
The terms “resort shares” and “affordable property” are two investment opportunities that thieves use to entice us to part with our money. Investment opportunities are marketed on intricate fake websites, with the claim that “for a little contribution of merely $100 sent via PayPal, you may be able to join in on the first floor of the investment.”
What to do next is as follows:
- When it comes to investing frauds, trust your instincts and go with your gut. Anything that promises a large reward in exchange for a small amount should be shunned like the plague.
- A few government or private websites may be able to authenticate the existence of the company and provide feedback from previous customers.
- Charities that ask for a gift or a promise are in the same situation as businesses that solicit donations. If they are not registered, check with the appropriate authorities.
Scammers Are Simply Avaricious When It Comes To Their Methods - Charity Scams / Investment Frauds
The work of a non-profit watchdog institution Charity Navigator is a non-profit organization that evaluates charities.
Following the outbreak of Covd-19, the United States government was compelled to provide stimulus checks to its citizens.
Scammers are claiming to “expedite your stimulus payment” for a little fee in exchange for your money in order to defraud you. Scammers may even refund your money if they are unable to obtain your stimulus grant for whatever reason they claim.
In order to collect money from those in need of money, it is obvious that a scam is being perpetrated. Despite this, the entire operation is improper.
The Covid-19 Home Test Kit Scam on PayPal
Because corona testing is not generally available, many who are unwell prefer to get their symptoms checked at their convenience. Con artists claim to be able to give you official government test kits for a fee of around $19.99.
Because this is another PayPal scam, only official government or county sources should be relied upon for information on COVID and testing procedures and results.
What Steps Does PayPal Take To Combat PayPal Scams?
Because there are so many con artists out there, PayPal wants to keep its legitimate clients safe from these con artists.
When dealing with any financial institution, there are regulations that must be observed if the institution is to be qualified for any protection programs.
- You must ship to the address that was specified in the transaction information. If the item was purchased through your website, it is critical that it be shipped to the address that was provided.
- You must be able to ship the item for which you are soliciting customers’ orders. This means that, for example, digital goods and services are excluded from the scope of the tax.
- Whenever we require any documents or other essential information from you, we ask that you respond as soon as possible (typically within ten business days).
- Your account must be linked to a physical address in the United States of America.
If you receive an "Item Not Received" error message, you should perform the following actions
- Any qualified payment will be displayed on the Transaction Details page, but if it is not tagged as such, it will not be displayed there. Tracking information must be supplied online in order to be eligible for insurance coverage.
- In the case of “Unauthorized Payment,” the term “unauthorized payment” is used. The payment must be listed as qualified on the Transaction Details page in order to be considered qualified.
- It is necessary to provide proof of delivery or shipment in the following instances. If you are any of the following, you are not covered by Seller Protection.
- It is possible that claims, chargebacks, or reversals will occur if the item received is significantly different from what was represented (e.g., you described an item as “new,” but sent a used one).
- In-person pick-up is available for items that can be purchased at a local store.
- Payments can be made through PayPal Direct, Virtual Terminal, PayPal Business, or PayPal Here, among other methods.
- Possession of drug paraphernalia, ammunition/firearms, and counterfeit merchandise are all strictly prohibited under the law.
- First Class Mail International is the most cost-effective option because the receipt only contains the recipient’s mailing address.
PayPal’s scams are easy to prevent if you know what to look for. If you’re receiving scam emails, chances are that many of them have already made their way into your spam folder.
Providing they manage to depart, all you’ll have to do is take care of a few fundamental responsibilities.
Don’t share your passwords with anyone, don’t open questionable emails, don’t click on links in emails or text messages, and try to avoid getting too close to strangers if at all feasible.
If you take into consideration the fact that, in spite of the fact that phishing assaults have become more sophisticated, you can still protect yourself online by utilizing security solutions that are specifically designed to do so.
Keep your personal information safe while browsing the internet, it is highly recommended that you use a virtual private network (VPN). You must be cautious and use common sense if you want to prevent being the victim of PayPal fraud.
Keep in mind that, while online services such as PayPal and similar services are convenient for transmitting money fast and efficiently, they are also popular among scammers since they are easy to access.
Maintain personal safety at all times.