How to Recognise & Avoid Common PayPal Scams in 2021

Paypal Scams can be a pain in the neck, especially when you know you have money on your account. That can be really worrisome. In this article, we would discuss how to tell when your account is being scammed and what are measures to take to solve this dilemma. For further discussion, you can go to MoneyBrighter. So now, let us virtually examine how we can address this issue!

paypal scams

Besides discovering the details about PayPal scams, you can also learn PayPal shipping linkAmazon PayPalPayPal ship nowPayPal customer service, and PayPal secret shipping. With these articles, you can learn and get the information you need from their shipping and customer service.

How to Identify PayPal Scams

If it sounds too good to be true, then think twice. Many of us are hesitant when somebody we do not know talks suddenly to us about something that sounds too perfect, but we’re not as careful online, which places us at risk.

Something is being given for free.

It is common to receive a message saying that you are lucky winners of a certain amount. If this happens to you, then trust your instinct. Again, if it is too good to be true, then it is not valid. Offers like these probably have a catch. Typically, scammers ask for some amounts. They would say it is for taxes, legal documents, documentary stamps, etc., so they can send you the money they promised but never intended to send. To avoid this scam, then send money to a stranger.

Overpayment

A customer intentionally sends a payment through Paypal, which is higher than the order’s cost, and then asks you to transfer them the difference. They would tell you that they accidentally sent an overpayment. So you would not doubt them, they would say you don’t need to send all the money they have overpaid and that you can keep it to make up for the inconvenience they have caused you.

They may even ask you to transfer the shipping fees to the shipper. This scammer has probably paid using a stolen credit card. Sometimes they also use scammed savings or checking account numbers. Take note of this, the money they said was accidentally sent to you is not really yours to keep. Once the account’s rightful owner reports illegal activities, the money would be withdrawn from your account. In that case, you would lose the amount you transferred to the scammer along with the item you shipped, and of course, you would also lose the payment.

How to avoid scams

To avoid this scam: don’t transfer money to a stranger. Common sense: a legitimate buyer won’t pay higher than the real amount of the purchase. When you encounter this situation, do not push through with the order. Never wire money to a fake shipping company; they would steal your money from you. 

Winning prizes

When you receive a message from somebody you do not know, and the content is congratulating you for winning something. Then be hesitant. The next message you will get is somebody asking for a small amount of money to take care of the handling fee, but the truth is you would not get anything in return.

To avoid this scam, don’t send money to a stranger. A legit prize won’t require you to pay to receive it.

No need to invest but with high profit

These types of offers are usually fraudulent and contain messages telling you not to miss this great deal. To avoid this scam, do not entertain these types of messages.

Misleading charities.

Scammers take advantage of disasters to fool soft-hearted people into giving to fake charities. This usually happens in natural calamities (like an earthquake, flooding, or famine), wars, and disasters like fire. To avoid this scam, carefully check any charity’s background to ensure your donation reaches the real victims. Make a background check on charities. If they don’t have a website, then don’t be too trustworthy.

Other than articles for your PayPal account, we also have things that could know you better the routing numbers for Wells Fargo and Bank of America. Do you even know that you can donate to Twitch? Read and learn here how to do it.

Common Types of Fraud

To know more about common types of scams and how to be safe from them, look online for fee fraud. You can also study the FBI’s articles on common types of scams. Most of all: be as careful online as you would be in real life.

  • Scams on shipping. There are many ways scammers involve shipping into their agenda. Be sure you’re familiar with the list below:
  • The buyer tells you he prefers his shipping account because he can avail of a discount.  He has a favorite shipping company that he has worked with for a long, or their shipping fee is lower or more reliable. In another version of the fraud, the buyer may even ask you to transfer the shipping cost to his preferred shipper.
  • If you use the customer’s shipping account, he can quickly get in touch with the shipping company and redirect it to a different address.
    • The buyer can then complain and pretend to be unsatisfied then ask for a refund because he didn’t receive his order.
    • You are helpless in proving that the buyer received his order, so you lose your product, the shipping expenses, and money.
  • If he asks you to send money to a fake shipping company, they can go away with your money.
    • Once you have sent the money, you’ll be surprised that a stolen card or bank account was used in the transaction. You will be obliged to return the money to the legitimate buyer whose account was stolen.

To avoid this scam, use your shipping account only. Never send money to a stranger. And ship only to the transaction information found on the Details page. 

Scam on Pre-paid shipping label

Your customer asks you to use their pre-paid label to take care of the shipping charges because it’s much cheaper that way.

By giving the label, the customer manages the shipping address of the package. They may ship it abroad, a PO Box, or some other locations impossible to trace. To be protected under PayPal’s Seller Protection policy, you need to send it to the address on the Transaction Details page. The shipping label may also have been used with a stolen credit card.

Review the customer’s order for fraud. If the customer requires you to use their pre-paid label, review their order for fraud. You can ask yourself if they have used a stolen card to make the purchase. Reject shipping labels from your customers. Ship only to the location on the Transaction Details page.

And if you are a victim of scams, you can immediately delete your PayPal accountremove the bank from Paypalcancel a pending PayPal payment, or report it to their customer service.

Rerouting package scam

The customer reroutes the product so they can submit a complaint that they did not receive it. Below is how the process goes:

  1. A customer puts an order and gives a false shipping address.
  2. The shipping company attempts to deliver the package it failed.
  3. The customer monitors the tracking information online and sees that the shipper couldn’t deliver the parcel.
  4. The customer gets in touch with your shipping company and requires them to deliver the package to their right address. The shipping company sends the box to the new address.
  5. The customer then files a complaint about not receiving the product.
    1. Since the shipment was rerouted, there is no way you can prove the item was sent to the address on the Transaction Details page.
    2. The customer gets to keep the product and money.
    3. Since the item failed to reach the Transaction Details page’s address, you will not be covered by Seller Protection.
    4. Sadly, you lose the product, the shipping fees, and the money.
    5. What is worse, you might also have to shoulder an additional rerouting fee.

What to do?

Coordinate with your shipping company and block buyers from rerouting items. Clarify the buyer’s address before sending it for shipment. Send shipments to the address saved on the Transaction Details page only.

  • The promise of business or job opportunities. Scammers will post fake job opportunities on dating sites, via spam email, or job posting sites.
  • Scam on reshipping packages. Reshipping electronics, clothing, and other items out of the United States are one of the most popular scams on work-from-home
  • You are asked to receive an item in the mail and then instructed to ship them out of the country.
    • The item was addressed to the address of the victim of a credit card scam.
    • Your fake “employer” gives you a shipping label. This shipping label was also paid for with a scammed credit card.
    • Your “employer” requires you to give your personal information, such as bank account details, so that they can send you your check.
    • Unfortunately, you’ll never be paid but instead, expose yourself to scam.
  • Remember that most business people will not ship items abroad.
    • Scammers need you to help get the goods out of the country. It also helps them from getting caught.
    • They take over your account and steal your personal information.

Identify who you are dealing with, and don’t just reship packages. If you were not yet aware, you are involved in a scam until you start receiving the packages, decline delivery, or send them back to the sender. Contact your Postmaster or report fraud to the Internet Crime Complaint Center. Never trust anyone with your private personal or financial information, especially to strangers.

Fake email or website

When you feel like you lead to a fake website or suspect that the email you received is fake, report it to [email protected]. Once you have sent an email, delete the email at once. Kindly log on to your account if you recall clicking on any link or downloading an attachment from the suspicious email or website so you can review your transaction history. It is also advisable to change your password. To complain about SPAM SMS messages, send them to ‘7726’. 

Are you new to using a PayPal account? We can guide you on how you can do transactions such as using PayPal on Amazonbuying ethereum with PayPalhow to chargebackhow to receive money on PayPal, and how to withdraw from PayPal.

Fraudulent, spoof, or phishing emails

If you receive an email claiming to be from PayPal, but it is not really from PayPal, then that is called “phishing.” It is called “phishing” because the scammer is phishing for your information, like your personal details or bank account information. Sometimes they come with attachments which when clicked, contain malicious software. 

If you clicked on any links or are unsure, log in to your PayPal account and check your recent activity to make sure everything looks right. Remember that a fake email does not necessarily mean that your account has been hacked. If you suspect an email is a scam, don’t open it. Never click on any links nor download any attachments. If you have done any of these, check your Paypal account and check the transaction history; check if everything is alright. You can also change your password and the security questions and answers. 

It’s also necessary to file a complaint to PayPal about the fake email or website as soon as possible. In this manner, you can help protect you and other PayPal account holders by forwarding any suspicious email to [email protected]. Delete the suspicious email.

Here are a few tips that can help you determine if an email is real or a scam:

  1. PayPal always addresses their clients with “Dear ______ (first name and last name or business name). If they use “Dear user” or “Dear PayPal member,” then you need to be suspicious.
  2. Some emails provide links that you need to click on, but before you click, drag your mouse to that link, and your browser will show you to which destination that link is heading. With that, you will know whether it is safe to click on that or not. If you.
  3. Emails with unknown attachments. Take precautions in attachments not until you are sure they are safe and legit. You might encounter companies or contractors sending you invoices that are new to you. Don’t ever open them. Some of them contain viruses that automatically install themselves when clicked on.
  4. Messages that connotes urgency. When you get an email stating that you need to update your account immediately, then think again. If you need to update your account, you can log in to your PayPal account and see if you really need to make some changes. Scammers usually take advantage of panic with that fake emergency so that you would fall for their trap.

Most of the time, scams happen once you believe in the messages sent to you. Here are some examples of messages used on PayPal Scams:

Account suspension

When you receive a spoofed email stating that you need to update your password on the link provided in their email because your account is in danger of suspension, then don’t fall for that. You can only change your password on the PayPal website. If you fall into their trap, then they can get your PayPal password. With this, you need to report it by forwarding it to [email protected].

Payment confirmation

When you receive an email about a payment confirmation about a certain purchase on your merchandise, don’t believe that. Don’t just ship the product to them. Log in to PayPal first and then check if the information you provided is the same as the invoice you can see on your PayPal account. Scammers want your item for free. PayPal only shows tracking numbers on the website, not thru email.  

Overpayment

Some scammers send emails saying that you sent an amount higher than the price of the merchandise. For example, you received $200 for a pair of shoes which you priced at $100. So you are asked to ship the item and the overpayment of $100. The scammer wants the item for free and then fools you more by asking for the extra $100 paid by mistake. The truth is, there was never really any payment transacted. Again, to check, log in to your PayPal account and see if you received any payment that matches the information on the spoofed email. 

Payment on hold

When you receive an email stating that they purchase a product but cannot go on with the order, you need to complete some information on the link provided. Once again, you can only complete a transaction on the PayPal website. 

FAQS

When do you need to change the password?

Here is a list of situations that need you to change your password:
>When there is something unusual on your PayPal account.
>When someone you don’t trust knows your password.
>When you see something unusual in your email account or other accounts online.
>When you just recently removed malware from your device’s system.
>When PayPal suggests you change your password.

How to check the status of a reported spoof claim?

It takes up to 10 business days for the necessary investigation. All unauthorized transactions and fees will be refunded back to your account once the claim’s decision gets done in your favor.

Is it possible to use an ATM card to verify a PayPal account?

No. It is only possible on Visa or MasterCard card.

Conclusion

PayPal is an online payment service that allows people to send money to one another quickly and easily. Customers can use PayPal’s platform to create an account that is linked to their credit card or checking account.

PayPal will never send customers emails with attachments or email links to download any kind of software. The links in emails in scam email may be misleading. If you get a suspect email, make sure to block it.

In this article, we learned about the common type of PayPal scams / common scams from fraudster and signs of fraud and what to do with them? Have you ever experienced one of these or other Social Media PayPal Scams ? If yes, then perhaps you might want to share it with us!

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