You would probably decline an oddly good proposal from a passerby on the street, but would you do the same online? Unfortunately, most internet users are still not skilled in protecting themselves from financial fraud.
PayPal, one of the biggest online financial services, is known for its scammers and impersonators. Here are some common PayPal scams you should watch out for.
Phishing Emails
Some fraudsters send real PayPal invoices, and others opt to impersonate a professional financial email. At first glance, it will have everything you are used to: the service logo, a common message, and a standard invoice template. Yet, the email asks you to pay for a service you never requested or call a fake customer support number to cancel the invoice.
Some mail can claim that your PayPal account is suspended. To get your account back, it asks you to follow the attached link and log in. Unfortunately, the link is fraudulent, and you end up entering your sensitive information into a fake log-in form, giving it straight to the scammers.
Free Money and Prizes Scam
The criminals will often send you an email stating that you can get a pile of cash or you won a special prize. They'll say that it's just a click of a button away, and all you need to do is pay a transfer fee for taxes or documents. They will receive your payment, and never send you the money or a present you were promised.
Fake Charity
Once a huge disaster happens, scammers will try to earn through donations. You will see it on the news and will be easily motivated to help. So, they will send a message to donate on PayPal. Sadly, some of these charities are fake.
Quick Investments Scam
PayPal scammers are keen on too-good-to-be-true investments. In 2024, they will mostly pressure you to invest in cryptocurrencies that you've never heard of. They claim that you will get massive returns. Then, they receive your money and never pay out.
Reshipping Packages Scam
Some fraudulent activities are harder to spot than others. For example, you can be hired for a shipping job and end up in a scam without knowing. In a scam involving reshipping packages, you will receive various items and ship them out of the country. Not only will you be exporting goods illegally, but you will also be asked for personal information and will never get paid.
Overpayment Scam
Small business owners are not safe on PayPal either. One of the common tactics is to send a PayPal payment for a service or product but overpay. You will be asked to wire the difference. Yet, the initial payment is most often made from a stolen account, and you will never get that money. So, you will end up losing the payment, the difference you wired, and the product you shipped.
Personal Shipping Discount Scam
Your potential customer orders a product from you but asks to use their favorite shipping service. They claim they have a discount or a good deal with the company. Sadly, they will then contact the shipping company and reroute the order to a different address. Then, they can claim that they've never received the product and ask for a refund. You end up losing the product and the money and paying for the shipping cost.
Prepaid Shipping Label Scam
Another popular variation of a previous scam is asking to use a prepaid label. Your customer will say that the shipping charges will be smaller that way.
With that label, the customer is in full control of the package, not the business owner. The latter is no longer protected by PayPal's Seller Protection policy, and the business owner ends up losing rights in any potential dispute.
How to Avoid PayPal Scams
● When you receive an email from PayPal, thoroughly check it. Never click on suspicious links or buttons; don't fill out odd forms. Don't download any email attachments.
● PayPal is a reputable company that sends professional emails, so typos and odd wording are a dead giveaway of a fake email. The company employees would never ask you for private information, either.
● Don't send money to users you don't know, and report all suspicious invoices and money requests. Don't call phone numbers sent in emails.
● A real customer would never overpay you or ask for an order reroute without a clear reason. Cancel any suspicious orders.
● Use one of the best VPN services to build a secure wall between your sensitive data and scammers. Using a VPN will protect your network connection, and this way, you can prevent unauthorized access to your PayPal account.
● Check any charity you are going to donate to. Use reputable resources to check if the charity is legitimate. A reputable charity will most likely have a dedicated website.