Stay Safe from PayPal Scams
Protect yourself from invoice fraud, phishing emails, and overpayment scams. Learn how to use PayPal's buyer protection effectively.
What You'll Learn
Common PayPal Scams
Recognize these sophisticated fraud schemes targeting PayPal users
Invoice Scam
Critical RiskFake invoices for services you never ordered, often for tech support, antivirus software, or cryptocurrency purchases.
Scammers send official-looking PayPal invoices with phone numbers to call for "cancellation," then trick you into giving remote access or payment info.
- Invoice for unknown services
- Urgent cancellation warnings
- Phone numbers in invoice notes
Overpayment Scam
Very High RiskBuyer sends more money than agreed and asks you to refund the difference. The original payment later fails or is reversed.
Often involves high-value items, international buyers, and complicated shipping arrangements. The check or payment always bounces.
- "Accidental" overpayment
- Requests to wire difference
- Rushed shipping demands
Phishing Emails
High RiskFake emails claiming your account is limited, suspended, or has unauthorized activity, directing you to malicious websites.
Modern phishing emails look identical to real PayPal emails. Always log in directly through paypal.com, never through email links.
- Generic greetings
- Urgent action required
- Suspicious sender address
Shipping Address Scam
High RiskBuyer asks you to ship to a different address than the one on file, voiding PayPal's Seller Protection.
Shipping to unconfirmed addresses means you lose all seller protection. Scammers will claim they never received the item.
- "Ship to my friend/relative"
- Different country requests
- Offers extra for "trouble"
Friends & Family Payment Scam
Very High RiskSellers insist on Friends & Family payments to avoid fees, eliminating all buyer protection for goods and services.
Friends & Family payments are like cash - once sent, they cannot be disputed or reversed, even for fraud.
- Refuses Goods & Services option
- "Avoiding fees" excuse
- Discount for F&F payment
Fake Charity Scams
Medium RiskFraudulent charities exploit disasters and tragedies to steal donations meant for legitimate causes.
Always verify charities through official registries. Legitimate charities won't pressure you to donate immediately.
- Similar names to real charities
- Emotional manipulation
- No tax-deductible receipts
How to Protect Yourself
Essential steps to secure your PayPal account and transactions
Enable Two-Factor Authentication
Add an extra security layer with 2FA. Even if someone has your password, they can't access your account without your phone.
Use Goods & Services for Purchases
Always select "Goods & Services" when buying from sellers. The small fee provides crucial buyer protection.
Verify Email Authenticity
Forward suspicious emails to spoof@paypal.com. Real PayPal emails address you by your full name, not "Dear Customer."
Link Bank Account Safely
Use a dedicated bank account for PayPal with limited funds. Consider using PayPal's virtual card numbers for online shopping.
Document Everything
Keep records of all transactions, shipping receipts, and communications. These are crucial for disputes and claims.
Crypto Security Features
Tools and practices to protect your digital assets
Purchase Protection
Coverage for eligible purchases if they don't arrive or aren't as described. File claims within 180 days.
Seller Protection
Protection against fraudulent chargebacks when you follow selling guidelines and ship to confirmed addresses
Security Key
Hardware or SMS-based two-factor authentication for enhanced login security.
Instant Notifications
Real-time alerts for transactions, logins, and account changes via email and mobile app.
Resolution Center
Dedicated portal for resolving disputes, filing claims, and tracking case progress.
Data Encryption
Industry-leading encryption protects your financial information during all transactions.
I've Been Scammed - What Now?
Act fast but understand crypto transactions are usually irreversible
Open a Dispute
Go to Resolution Center immediately. You have 180 days to dispute transactions. Act fast for best results.
Resolution CenterContact PayPal
Call PayPal support for immediate assistance. Have transaction IDs and all documentation ready.
Report Unauthorized Access
If your account was compromised, report it immediately and change your password and security questions.
Contact Your Bank
If funded by bank or card, contact them immediately. They may offer additional protection.
File Police Report
For large amounts, file a police report. This documentation helps with PayPal claims and bank disputes.
Report to IC3
File with FBI's Internet Crime Complaint Center for federal tracking and potential investigation.
IC3.govQuestions About Investment Apps
Learn from what people are asking about Investment apps and stay ahead of the curve.
This covers fake invoice scams where fraudsters send official-looking invoices for services like tech support or antivirus software, then trick victims into calling fake customer service numbers or giving remote access to their computers.
This addresses the crucial distinction between payment types, explaining that Friends & Family offers no buyer protection and cannot be disputed, while Goods & Services provides essential protections for purchases from sellers.
This covers identifying fake emails claiming account limitations or suspicious activity, including how to verify legitimate PayPal emails (they use your full name) and the importance of logging in directly through paypal.com rather than clicking email links.
This addresses overpayment scams where fraudsters send excess funds, then request refunds, with the original payment later failing or being reversed, leaving sellers at a loss