Many of us use PayPal as a way to add an extra layer of security onto our online shopping payments. But with a giant name like PayPal, there will always be some fraudster out there trying to trick people out of their accounts - and even money.
With the Cost of Living crisis giving many households extreme stress and money worries as it is, it is worth making sure you're well aware of possible scams when it comes to your money. Fortunately, a cybersecurity expert from VPNOverview.com - Theodor Porutiu - has outlined the most common PayPal scams of the year so far, and how you can avoid them.
Most of these scams will come through to your email address, so it's worth being wary of every message you receive. What's more, there are scams directed at both buyers and sellers, and even those which claim to be from charities looking for help with relief efforts, especially after a natural disaster or similar event.
Here are the most common PayPal scams of 2023...
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The "problem with your account" scam
As email is a scammer's preferred method of stealing your money, the experts say, this scam may see you receive a phishing email claiming there to be an issue with your PayPal account. The email will also include a link and a request that you click on it to log in to your account.
Experts say that these scams are some of the most common 'social engineering attacks' designed to gain access to your PayPal account.
The "promotional offer" or "you have money waiting" scam
With this scam, experts say you will receive an email offering you a cash rebate or other financial incentive. The email will tell you that you must log in to your PayPal account to verify a few details to claim that reward.
Like other email scams, the link in the email directs you to a fake PayPal website. If you click on the link and enter your login credentials, the scammers will get access to your credentials and drain your account.
The "advance payment" scam
Experts say that this scam "plays on emotion", sending you an email notification to tell you that you've won, inherited or are entitled in some other way, to receive a considerable sum of money from an unexpected source. The only catch is that you must first send a small sum via PayPal to cover transaction fees - or another fake expense - but once you send the small sum you will never hear from the scammer again and will lose the money you sent.
The "shipping address" scam
Scammers also have a vast number of shipping tricks up their sleeves to try and steal your money from PayPal. Unlike unsolicited emails that lead you to a fake PayPal site, these scam methods involve actually engaging with you on the real PayPal platform.
If you sell items online, then you're the target audience for these scams. Several types of common PayPal scams involve shipping addresses, including:
- The buyer wants to use a preferred shipping method - The buyer will ask you to ship their item using their preferred shipping company, easily reroute the package to a different address and then contact PayPal to file a claim for non-receipt and ask for a full refund. Since you cannot prove the item wasn't received, you're out of money, the item and even the shipping fees.
- The buyer provides their own shipping label - The buyer will offer to send you a pre-paid shipping label, reroute the package to a different delivery address and claim they never received the item.
- The buyer gives a fake shipping address - When the shipping company cannot deliver the package to the invalid delivery address provided, the scammer will then step in and provide a new, legitimate delivery address, but as the package gets rerouted the buyer will allege they never received the item.
The "alternate payment method" scam
Experts say that, while this is not a scam in and of itself, it is a measure that scammers take to leave you without options after defrauding you. Sometimes, a scammer will ask you to transfer money using PayPal's Friends and Family option.
While this may sound like a good idea at the time - because it eliminates the fee that PayPal levies on standard sale transactions - paying for goods is not permitted under the Friends and Family money transfer option. Any payments made like this are no longer protected by the PayPal protection program and, once you transfer money this way for goods, you have no recourse against fraud claims.
The "payment pending" scam
This scam will see a buyer engaging with you on PayPal to pay for an item you sell. They will message you, claiming to have made the payment, but that PayPal won't release the money until you provide a shipment tracking number.
The scammer wants you to ship the product and provide the tracking number before you get paid and, if you do, the fraudulent buyer gets the item and disappears without paying.
The "fake charities" scam
Experts also warn that, in the case of things like natural disasters and the like, many people will search for local charities where they can donate to relief efforts. Scammers will often use this to their advantage however, setting up fake charities or donation sites where they will ask for contributions via PayPal.
The "call back phishing email" scam
As part of this scam, you will receive an email warning you of "suspicious activity" in your PayPal account, usually with large transactions involved. The email will urge you to call a number to cancel the transaction, however the number will direct you to a scam call centre that will try to get your PayPal login details and other personal information.
This scam, experts say, can be quite convincing as the scammers use a 'paypal.com' email address, realistic email designs and even create fake invoices to add to the sense of urgency.
How you can avoid falling victim to PayPal scams
- Never send money outside PayPal if you transacted on the website - One example is, if you conduct a transaction on PayPal but your customer accidentally sends a larger amount than agreed upon. This other person now wants a refund sent through a different platform, but if you comply with their request, PayPal will not be able to help you since the refund was processed outside of their system. If a buyer overpays you, cancel the transaction immediately and start over.
- Always use your own shipping method - When you choose the shipping method, you control delivery and cannot be tricked with bogus shipping labels or rerouted packages.
- Only ship to the address on the Transaction Details page - When you ship only to this address, you satisfy one of the requirements of PayPal's Seller Protection program.
- Only deal with verified buyers and sellers - Verifying a PayPal account can be troublesome and it requires sharing personal information with the platform, so anyone that did it is most likely not a scammer. If you do business with non-verified PayPal accounts, proceed with extreme caution.
- Be wary of email links and attachments - Never click on email links, even if they look legitimate. Logging in to your PayPal account directly in your browser or app is much safer.
- Get a good antivirus software - Some PayPal scammers will try to get malware on your computer. Never download anything sent to you via email, and use reliable antivirus software, such as Norton.
- Only contact PayPal using the number listed on its website and remember that official PayPal communications will always address you by name.
Have you been scammed, or the victim of fraud recently and wish to share your experience to help others stay safe? Let us know in the comments below.
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