PayPal is one of the most popular and frequently used online payment platforms. Used by business and between friends and family alike, all you need to transfer money to someone is their email address. The ease with which you can transfer money with PayPal is one of its greatest strengths – but it also comes with drawbacks. One of these drawbacks is the rising frequency of PayPal scams, carried out by fraudsters looking to deceive people into parting with their money. PayPal has remained a common method of fraud experienced by online merchants.
Here we’ll detail how PayPal scams work, how to spot them, and – most importantly – how to avoid them.
Understanding Common PayPal Scams
PayPal scams come in many shapes and sizes. The goal is always to trick people into disclosing sensitive information or sending money to the scammers. There are two main types of PayPal scams – one centering around Phishing, and those where the fraudster poses as a seller or buyer.
Phishing involves impersonating friends, family, or other trusted contacts to convince the user to send them money, or sensitive information such as personal data and login credentials. Fraudsters might even pose as PayPal itself, with links to fake websites that mimic their official domains.
With selling scams, users will attempt to purchase something through PayPal from what appears to be a legitimate seller, only for their purchase to never be sent and the seller to disappear. The seller may even claim that the first payment hasn’t gone through and convince the user to send multiple payments.
Similarly, a scammer could pose as a buyer, and send a PayPal invoice scam in the form of confirmation emails, suggesting they have overpaid for the product and need a refund. They might also exploit PayPal’s buyer and seller protection policies by filing false reports.
How to Spot PayPal Scams
In order to spot PayPal scams before they can catch you, you need to exercise a healthy amount of skepticism every time you’re asked to send money online. Here are some key things to look out for:
- Pressurized situations – scammers will often try to create a sense of urgency and convince you to act quickly; meaning you’ll have less time to notice the inconsistencies in their stories.
- Suspicious links or emails – try to verify the source whenever you’re sent a link or an email, even if it’s from someone you know – they themselves might have been hacked by a scammer.
- Inconsistent spelling and grammar – generic greetings full of spelling and grammar mistakes, or misspelled email addresses are a good indication that the sender is not who they’re claiming to be.
- Requests for personal information – PayPal, and other reputable platforms like it, should never ask you to provide sensitive information via text or email.
- Too good to be true – if something sounds too good to be true; such as a deal, an offer, or an opportunity – assume it isn’t true until proven otherwise.
What to do when you recognize a scam attempt
If you recognize that someone is trying to scam you, it’s important to act quickly. Stop engaging with the scammer as soon as you realize their intentions – do not click on any links or attachments in any of their messages, as they may contain malware, and do not send them any of your information. Report the scammer (we’ll detail how to do this further down) and monitor your account for any unauthorized transactions or suspicious activity.
By taking swift action and reporting PayPal scams you’re not only protecting yourself, but reducing the likelihood of the scammer going on to cause trouble for someone else.
Secure Transaction Practices
There are ways in which you can enhance your security and reduce the risk of falling prey to scammers. Consider adopting the following secure transaction practices:
- Enable Two-Factor Authentication (2FA) – 2FA can be added to your PayPal account for an extra layer of protection. You can choose to send a verification code to your mobile device to prove you are who you say you are. Alternatively, if you use the mobile PayPal app, you can use facial recognition biometrics to gain access to your account.
- Use unique passwords – It can be tempting to use the same password for all of your accounts in the name of remembering it easily. However this can leave you vulnerable to hackers and data breaches. Using a password manager allows you to opt for complex passwords but removes the difficulty of having to memorize them.
- Verify all transactions before proceeding – Make sure to read and review all of the details of any transaction you make via PayPal, including the recipients information and the amount being transferred. If anything seems at all suspicious, don’t complete the transaction before you can verify its legitimacy.
- Keep software updated – If you use the PayPal app make sure you stay on top of manufacturer updates. These updates patch any security vulnerabilities the developers may have identified, and until you complete the update you may be exposed to threats.
Reporting PayPal Scams
By reporting scams, you’re protecting the online community as a whole. If you’ve encountered a scam, take the following steps.
- Report it to PayPal. Contact their customer service to report the scam and provide any relevant details, including the scammer’s email and any correspondence between the two of you.
- If the scammer has successfully taken your money, make sure you highlight the suspicious activity to your bank.
- Warn friends and family who might come into contact with the same scammer – e.g. if you use the same buying and selling websites.
Online Safety Tips
There are lots of things you can do to improve your general safety online. Making sure that you’re up to date with the latest scamming trends can help you to stay ahead of potential threats – they are often reported in the news, or shared by other users who have already fallen foul of the scam.
While scammers are the criminals in these situations, and their behavior is inexcusable, it’s a good idea to take responsibility for your own online security to keep yourself from being caught out. Trust your instincts during transactions, keep your personal information private, and only use secure payment methods wherever possible.
Feel Secure With iolo
Now you know how to avoid PayPal scams, consider using iolo solutions to protect your devices even further. It’s great that we can buy and sell things in a few clicks online, and using products that help you to shop smart can improve this experience even further. Our password manager ByePass can shield your passwords and online payment information, and Privacy Guardian protects your data and online activity, stopping you from being targeted by annoying and malicious ads. Just a few examples of how you can stay safe with iolo.
