PayPal is a great safe and secure way to buy good and services online. Especially useful if you don’t want to hand out your credit card details.
PayPal is also a convenient way to be paid too. So if you list your item on sites such as Craigslist and a buyer offers to pay money into your PayPal account that is safe right ?
But how can scammer get a hold of your money if its in your PayPal account?
Here is how they can not only get your money but also keep the item they bought from you too:
Here are the PayPal scams:
1. Shipping Address Scam
The Scam: The scammer asks for the items to be shipped to a specific address and money is paid into our PayPal account. You send the item to the required address.
The Reality: The delivery address is an invalid address and the sipping company can not find the location to make the delivery. After several attempts they flag the item as undeliverable on their system. The scammer then makes contact with the delivery company giving them the new address where the parcel can be delivered to.
What happens: The scammer get the item and then files a complaint with PayPal that the item was not delivered. You have no proof that it was indeed delivered as the transaction detail shows the original address. PayPal Seller Protection only covers the shipping address that PayPal has on the system and therefore not only do you lose the item but also the money.
2. Over Payment Scam
The Scam: the scammer makes a payment into your PayPal account for more money than the item is worth. They apologise for their mistake and ask for the balance to be paid into their bank account.
The Reality: the scammer did indeed over pay for the item and the money does reflect in your PayPal account.
What happens: when you pay the mistaken over amount into the scammer’s bank account, the scammer lodges a complaint with PayPal saying their account was hacked and they did not mean to make a payment to you. PayPal reimburses them their money and you are out of pocket for the “over payment” amount you paid to their Bank Account.
3. Fake Email Scam
The Scam: The scammer sends you an email from PayPal showing that they paid the money into your PayPal account. However, PayPal is holding the money until you send a Tracking Number for the shipment and then the funds will be released.
The Reality: PayPal does not work as an escrow service and does not hold customer’s money nor does it get involved in shipping or tracking numbers. The email is a fake email.
What happens: The scammer hopes that you rush out and ship the item to them, email them the Tracking Number and then they string your along with excuses such as “the money will only reflect once the package arrives”. At that stage, it is too late – they have your item.
4. Phishing Email Scam
The Scam: The scammer send you an email from PayPal showing that the funds have been transferred into your account and once your click on the confirmation button the funds will be available to you.
The Reality: the “confirmation button” takes you to a fake PayPal looking website where you log in with your username and password to “confirm” the transaction.
What Happens: As soon as you enter your username and password on the fake PayPal site, they scammer gets these details and is able to log into your real PayPal account and make payments or withdraw your money.
5. Hacked PayPal Scam
The Scam: PayPal sends you’re an email saying money has been deposited into your account. You log into PayPal and the money is there. You ship the item.
The Reality: Weeks later you are notified by PayPal that the money has been withdrawn from your account due to fraud.
What Happen: Scammers hack into other people’s PayPal accounts (as with the Phishing scam above) and use those accounts to make payment. When PayPal discovers the hacked account, they reimburse the money under certain conditions.
PayPal wants to protect its legitimate customers and has amazing buyer and seller protection programs. However, as with any financial institutions, there are rules to stick to in order to be covered b the protection plans:
|Seller using PayPal||Buyers using PayPal|
Seller Protection does apply only if:
For “Item Not Received” cases:
For “Unauthorized Payment” cases:
Seller Protection does NOT cover you if:
More info here: https://www.paypal.com/us/webapps/mpp/security/seller-protection
You ARE covered by PayPal Purchase Protection:
There are NOT covered:
more info is available here: https://www.paypal.com/us/webapps/mpp/paypal-safety-and-security
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