PayPal has over 430 million different accounts on its system, so why are users still exposed to fraud and scams? You’d think they want to protect their customers, but they’re just trying to protect their margins. Fraud’s always evolving. Stopping it isn’t a race with a finish line; it’s a never-ending battle. A battle where PayPal isn’t putting up much of a fight.
CyberNews told PayPal about 6 different vulnerabilities on their system, and PayPal’s response was essentially, “Oh well.”
Scams and fraud are evolving, especially when it comes to PayPal. It’s even getting to the point where government officials are sending warnings to users. In February, the Attorney General of Pennsylvania released a warning to users about PayPal scams. Their users also complain about being exposed to different scams and fraud related to PayPal almost every single day.
So what is PayPal doing to fix these glaring problems? The answer is “not much.”
Let’s cut to the chase: PayPal has problems that could be solved, but they aren’t doing it. Fixes cost time, money, and effort. When you’ve got billions in revenue coming in, why rock the boat? Fraud can wait. Your pain is not their priority.
PayPal is becoming a scammer’s paradise, and here’s why:
They ignore obvious problems
Why fix something that affects thousands when you cater to millions?
Fixes could mean system shutdowns
That means lost revenue, and that’s bad for business.That means lost revenue, and that’s bad for business.
They’re chasing growth, not security
When you grow 30% every year, that’s your focus.
Scammers evolve faster than security
They’re always playing catch-up. A race they’re not winning.
It’s not their responsibility, it’s yours
CNP (card-not-present) and online transactions are a warzone compared to card-present sales. When you have 40 million transactions every day, fraud is inevitable, but instead of bulletproof security, PayPal is handing out paper shields.
They have basic fraud protection, sure, but they mostly just wait for you to report it. They aren’t trying to protect you, they’re trying to get you to protect them.
That’s why you need to know about common PayPal scams and how to avoid them.
Common PayPal Scams & Fraud
Phishing – Emails & Phone Calls
How It Works
Phishing is a specific form of identity theft where a scammer tries to impersonate a company or business to steal your identity or information, usually by email, phone calls, or text messages.
How You Can Avoid It
Scammers are getting smarter, but you can learn how to protect yourself.
- Don’t Give Out Your Passwords
- Verify and Validate Any Email or Link You Receive
- Scammers design entire websites to look like PayPal’s login portal so that you’ll submit your info.
Fake Invoices
How It Works
PayPal users will receive random requests for payment or invoices from companies claiming they provided a service or product. Scammers are counting on people who just quickly pay their bills without paying attention.
How You Can Avoid It
You don’t have to pay an invoice just because you received one. Here are some ways to avoid the fake invoice scam.
- Check Every Invoice or Payment Request
- Read Every Email Notification
- You could mindlessly click a text and end up paying for a fake invoice.
Overpayment Scams
How It Works
The scam is when some buyers send you more than the agreed amount. It could be a few dollars, it could be hundreds or thousands of dollars. They’ll contact you, claim they made a mistake, and then request a refund through PayPal or another app. Then, after you’ve made the refund, their original refund will be tagged as fraud and removed from your account.
How You Can Avoid It
Keep a watchful eye, use these tips and tricks, and you won’t fall for overpayment scams.
- Verify All Payments & Transactions
- Don’t Offer Refunds Outside of Your Payment Platform
- Do Not Accept Any Overpayments
- Report Suspicious Activity or Payments
Fake Online Stores
How It Works
Scammers are resourceful, that’s for sure. They’ll design entire websites just to get a few scam orders. A scammer could create a store that looks identical to your own or another online merchant to convince unsuspecting customers to give over their payment information.
How You Can Avoid It
Online stores are tricky to avoid, but there are signs you should be able to see.
- Verify Every Website You Buy From
- Use Strong Passwords & Logins
- Use Credit Card Payments, Not Debit Cards
Fake Fraud Alerts
How It Works
Fraud alerts are a useful way for payment companies to notify their customers about potential fraud, sometimes in real-time. That’s what scammers use to their advantage, though. They’ll create fake fraud alerts that look exactly like a PayPal notification to get you to submit your private login information.
How You Can Avoid It
Vigilance is key when it comes to avoiding phishing scams like fake fraud alerts.
- Don’t Click on Suspicious Links or Websites
- Don’t Answer Calls or Emails from Suspicious Sources
- Always Verify You’re Logging into PayPal Directly
- Check the Email Address of Any Notification Emails You Receive
- Monitor Your Account for Fraudulent Activity
Stop Getting Burned by PayPal
Scammers always find a way in, even on platforms as big as PayPal. It’s a goldmine, but sometimes it’s your gold that’s up for grabs.
If you or your business has been hit, don’t blame yourself. Those scams aren’t new; they’ve been around for years, and PayPal still doesn’t care.
Just because they offered a refund doesn’t mean that the next scam won’t land in your inbox tomorrow. That’s why it’s on you to make the right choice.
Play Smarter with Safer Processing
You don’t need apologies, you need a system that fights fraud. That’s where Luqra comes in. We aren’t reactive, we’re proactive. Blocking, tracking, and killing fraud at the source. Our team doesn’t sleep on scams, and neither does our tech.
- Risk Detection
- Top-tier Human Support
- Evolving Fraud Protection
Luqra secures your payments and your processing.
We don’t just support you, we protect you. You shouldn’t rely on luck when you can rely on smarter processing. Let’s lock down your processing and your protections at the same time.
