Learn about scams

The difference between fraud and scams

Fraud

Fraud is when someone gains unauthorised access to your account. For example, a fraudster gains access to your credit card information and makes purchases that you are not aware of and have not authorised.

Scams

Scams are when you authorise a payment but don't receive what you expect or don't receive anything at all. For example, you send money to a seller to pay for a laptop using the Friends and Family payment type, but you never receive the laptop.

Common approaches fraudsters take

Sense of urgency and deception

If you get a request that asks you to act fast, it could be a scam. Scammers try to lure you into calling a phone number, sharing personal info or installing malicious software.

Fake payment confirmation or request

Fraudsters may use PayPal to send you an invoice or money request that looks real so you’ll call them. If you don't recognise the requester, ignore the request and don’t call any included phone numbers. Go to our Contact Page to get in touch with customer service. Please forward the email to phishing@paypal.com.au and then delete it.

Extortion scam

Be wary of scammers who threaten to abuse or expose your personal information if you don't pay them, often through crypto or Friends and Family money transfer. A fraudster will probably use a deadline to get you to act quickly. Block all contact with the fraudster and report to local authorities.

Tech support scam

Some people claim to be technical support, affiliated with a reputable company. They warn that your computer may have a virus or other vulnerability. To resolve this fake issue, they try to access your computer remotely and request payment for unnecessary services.

Fake debt scam

Some fraudsters will represent themselves as a debt collector or court official and propose that you pay debt you don't actually owe to avoid “trouble”. Any communication about a case of this magnitude would come via registered post.

Posing

This is when fraudsters disguise themselves and claim to be a reputable organisation seeking info.

Phishing scam

Emails, texts, phone calls and/or copycat websites disguised as legitimate businesses are all phishing. Their goal is to get access to your personal info. Report PayPal phishing to phishing@paypal.com.au

Government impersonation scam

Pretending to represent a government agency and calling or sending an email requesting personal info or a payment is a serious offence. Make sure you report it.

Social security imposter scam

Be wary of inquiries claiming to be from government officials, police or other reputable organisations. They may claim there's a problem with your account or that you owe money. In order to resolve this issue, they'll ask you to provide personal info and/or send payment.

Report to the authorities or federal police in your location.

Customer service impersonation

Pretending to represent customer service and requesting that you share personal info such as your password or 2-factor authentication code, send money as a “test” transaction or download software is never legitimate. If a message asks you to contact PayPal customer service, go to the PayPal Help Centre.

False promises

Scammers get into the power of persuasion in an attempt to fool you into giving up your personal info. Beware of deceptive advertisements and social media posts linking to fraudulent offers.

Online shopping scam

Fraudsters set up fake online stores or apps, often advertised on genuine sites. They're usually selling popular items at very low prices. Be wary of items far below market price, these scammers will send you a counterfeit item or nothing at all and the fake site will disappear before you have a chance to act.

Text message scam

The promise of free gifts that are claimed by providing personal info via text is trouble. Your info is then sold to identity thieves or hackers, leading to unauthorised charges or use of your identity.

Contest scam

You may be told that you've won a prize for a contest or lottery you don’t remember entering, and then asked to provide personal info, send money or attend a meeting in order to collect the prize. Remember, a legitimate prize won't ever require you to pay in order to receive it.

Advance fee scam

When you leave a deposit in anticipation of receiving a loan, an investment or a gift of greater value, there's a chance you may receive little or nothing in return. Always vet the recipients carefully.

Overpayment scam

Beware of those who try to overpay for an item with a cheque or credit card and then request a refund for the overpaid amount. Their cheque will bounce or the card they're using may be stolen.

Pyramid scam

If your payout in any venture is contingent upon recruiting new participants, you may be getting involved in a pyramid scheme. The promise of a large profit in a short time is a big red flag.

Employment scam

Never pay for an employment opportunity that guarantees a profit. If you must send payment for supplies or computers first, it isn’t a legitimate job opportunity.

Too good to be true scam

Free products, items that are substantially below market price, get-rich-quick schemes and anything that just seems to be too good to be true, more than likely, is.

Emotional pleas

Don’t let fake requests for sympathy or family obligations persuade you to act.

Charity scam

Whether donating online or by phone, always verify the legitimacy of the organisation. Someone claiming to be associated with a well-known fundraising effort (e.g., disaster relief) may be trying to scam you.

Family emergency scam

Watch out for someone who poses as a relative or friend asking for funds to help with an emergency - generally with a sense of urgency. Try to take a step back before moving forward in a situation like this.

Romance scam

Fake profiles on dating apps or social media that strike up a romantic interest may be trying to gain your confidence and trust. They then make up a story and ask for money. Don’t mistake that for the real thing.

Cryptocurrency

Avoid these scams when dealing with modern digital currency.

Theft of cryptocurrency funds

Secure your digital wallets to help prevent others from gaining access and stealing your crypto. Use wallets or generate keys only with trusted providers. If available, enable multi-factor authentication. When transferring crypto, double-check that the address you see on-screen matches what you entered.

Employee impersonation scam

Scammers may contact you and pretend to be a customer service rep or offer free give-aways to persuade you to share account control or info. Don’t be fooled. Instead, contact the company via the phone number or form provided on their website.

Ponzi schemes

Carefully consider any crypto investment that seems too good to be true. Promises of high returns and minimal risk can mean you’re being misled. Beware of complex investment strategies and unlicensed advisers.

Pump and dump scams

Beware of fake recommendations for hyped crypto. Scammers will buy crypto and try to get you to buy it, too. Their plan is to artificially “pump up” the price so they can sell it before the price inevitably falls.

Fake websites and typosquatting

Don’t click through email or ad links because scammers use fake websites and apps to lure people to log in so they can steal their credentials. They’ll use colours or styles that are similar to authentic sites and apps, and often, the site address is similar, but misspelt.

Cryptojacking scam

Hackers will try to hijack the processing power of your device so they can illicitly mine crypto. They can gain access if you click on infected links, ads or attachments. Run anti-virus scans and ad blockers. Monitor processing power consumption with a browser extension or software.

How to be protected when you send money to a seller

When you send money with PayPal for things sold by someone you don’t know, like items posted to online marketplaces, make sure you select Goods and Services as the payment type. By selecting Goods and Services, your transaction can be covered by PayPal's Buyer Protection program in case the seller turns out to be a fraudster.1 There is no cost to you as the buyer when you use the Goods and Services payment type on PayPal. Be wary if the seller tries to convince you to use the Friends and Family payment type, as this is a red flag that it is a scam.

Purchases made via the Friends and Family payment type will not be eligible for coverage via PayPal’s Buyer Protection program, so you may be unable to get your money back.2

Learn more

Knowing about scams can help protect your identity and info.

Learn how to report suspicious emails and text messages. Read more

Understand the difference between Send Money types

Make sure you know the recipient when sending funds using Friends and Family.

Common scams and how to spot them

There are many approaches scammers can take. Learning more about them can help you protect yourself.

Our Help Centre is available

Find answers to commonly asked questions and get help with your PayPal account.

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