What are common scams and how do I spot them?
Common
online scams to watch out for include:
Advance Fee Fraud
If you get an offer for free money, there's probably a catch. Usually, fraudsters will ask you to send a small amount of money for taxes, legal documents, etc. They say they can only send you the millions you’re promised (but never intend to send) after you advance an initial amount.
How to avoid this scam: Don’t wire money to strangers.
Overpayment Scam
A buyer sends you a payment that’s more than the purchase price of your item or service. They claim they’ve accidentally overpaid you or sent the extra money for shipping costs or great service. Then they ask you to wire them the difference.
In this case, the fraudster may have paid with stolen credit card or bank account. Any money the fraudster sends you won’t be yours to keep. Once the account holder reports unauthorized activity, we can withdraw the money from your account. You’ll lose the money you wired to the fraudster, the product you shipped, the shipping costs, and your payment.
How to avoid this scam: If a buyer overpays you and asks you to wire them the difference, don’t do it and consider canceling the order. A legitimate buyer won't overpay you.
Prize Winnings
You receive a message that asks you to pay a small handling fee to collect some fabulous prize. You send the handling fee and get nothing in return.
How to avoid this scam: Don’t wire money to strangers. You shouldn’t have to pay to receive a legitimate prize.
High Profit No-Risk Investments
You receive a message about an investment opportunity that urges you to “Act Now!” These “too good to be true” types of investments are usually scams.
How to avoid this scam: Stop communication with this person or company.
Fake Charities
Fraudsters will use disasters to trick you into donating to fake charities. This usually happens when there’s a refugee crisis, a terrorist attack, or a natural disaster.
How to avoid this scam:
Check the background of any charity to ensure your donation goes to real victims.
If a charity doesn’t have a website, be cautious.
Shipping Scams
Fraudsters use several techniques to incorporate shipping into their schemes. Commonly, a buyer will ask you to use their shipping account or prepaid shipping label because they get a discount. Or they may ask you to wire the shipping fees to their preferred shipper.
If you use the buyer's shipping account, they can reroute the order to another address. The buyer can then open a complaint asking for a refund because they didn't receive their order. You’re unable to prove that the buyer received their order, which means you lost the product, the payment, and the shipping costs.
If the fraudster asks you to wire the money to a bogus shipping company, they can steal your money. After you wire the money, you find out the fraudster placed the order with a stolen card or bank account. You’ll be liable to return the money.
How to avoid this scam:
- Only use your shipping account.
- Don’t wire money to strangers.
- If a buyer asks you to use their shipping service, carefully review their order for fraud. They may have used
- a stolen card or bank account to finance the purchase.
- Only ship to the address on the Transaction Details page.
- Contact your shipping company and block buyers from rerouting packages.
- Validate the buyer's address before shipping.
Employment Scams
A popular work-from-home scam asks you to reship electronics, clothing, and other items out of the United States. You receive the items in the mail and your “employer” asks you to ship them out of the country. They’re actually using you as an intermediary to ship stolen goods.
Or someone may contact you about a great business opportunity. They need an employee or partner to sell some expensive products for them. They trick others into sending them money and merchandise then ask you to take the money and pay a “supplier.” They may also ask you to update your PayPal account address to their address.
After you pay the supplier, you learn the buyers only received empty boxes for their orders. Because you’ve listed your address as the supplier’s address you can be liable for the stolen money.
With these scams, it’s also common for your “employer” to ask you for personal information such as your Social Security number and bank account details. They tell you they need the information to direct deposit your check but really use it to steal your personal and financial details.
How to avoid this scam:
- If it's too good to be true, it probably is. Know who you’re dealing with and don't reship packages.
- Never give your private personal or financial information to anyone you don't know.
- Don't list someone else's address on your PayPal account.
- Verify your suppliers and don't send money to someone you don't know.
- Only ship items to the address on the Transaction Details page.
- Be on alert if you’re asked to ship a lot of packages
overseas or to the same post office box.
Other common scams:
You can learn more about some well-known fraud schemes and how to avoid them by clicking on the following external links:
To report a suspicious email or website, forward it to phishing@paypal.com and we’ll investigate it for you. After you send us the email, delete it from your inbox.
If you notice a payment that you didn't authorize, let us know right away through our Resolution Center.