Can people scam you using paypal?

[lloydkayak]

An Xperia Active Waterproof Smartphone

[GrumpyOldGuy]

PayPal only requires an email address to send money, so you aren't divulging sensitive information. PayPal sends you a notification when funds arrive and sometimes you have to accept the funds. I would log into my PayPal account and double check to see the money is there. i can't see the scam involving the PayPal process, I think the scam bit comes once you take the next step. The extra R2k is the carrot.

 

Whats the next step.?

 

Lets be clear, the question was can a Pay Pal account be scammed, not is it a scam e-mail, (which it obviously is) so far only edman has offered a reasonable explanation of how it could happen, but it seems no-one is sure that's how it works.

 

The Op would presumably wait for the funds to be cleared into his Pay Pal account before sending, is he secure in this instance....thats really the question.?

 

I am also interested to hear.

[covie]

lol tell him sure let him pay, wait for money to clear, withdraw said funds (which probably will never clear) and then mail it off. If legit. though seems like one hell of a scam.

[HeartCoppi]

If it seems to good to be true... it often isn't

 

I have actually had a similar incident in responding to an ad for a boat.

The response is that he is selling urgently. However he is the UK and the transaction will be done via ebay so that I may benefit from the buyer protection. (btw there is no such thing as seller protection re paypal)

The request was to send my full name and address so that the process may be initiated for me.

I am a registered user with ebay so I only need to supply my user name in such an instance.

Needless to say there is still no notification in my ebay account.

What would he do with my name and address??

 

oh... and obviously a non specific email like gmail or aol or yahoo is also evidence

[Wrigs]

Ok Just sent off a message to PayPal - will let you know what i get back.

 

 

PayPal Question:

Hi

 

I have a question about the certainty of payments received. At which point in the process of receiving funds into my PayPal account is it totally secure with no chance of fund reversal?

 

In other words

1. As a seller of goods and receiving payment by PayPal, at which point are funds cleared?

2. Once these funds are cleared under what scenarios could they be automatically be reversed without my authorization?

 

My particular concern is whether or not a fraudulent buyer could manipulate events such that payment is received by the seller, goods are released and then manipulate reversal of the payment in some way. Is this risk possible?

 

Thank you

[GrumpyOldGuy]

Ok Just sent off a message to PayPal - will let you know what i get back.

 

 

PayPal Question:

Hi

 

I have a question about the certainty of payments received. At which point in the process of receiving funds into my PayPal account is it totally secure with no chance of fund reversal?

 

In other words

1. As a seller of goods and receiving payment by PayPal, at which point are funds cleared?

2. Once these funds are cleared under what scenarios could they be automatically be reversed without my authorization?

 

My particular concern is whether or not a fraudulent buyer could manipulate events such that payment is received by the seller, goods are released and then manipulate reversal of the payment in some way. Is this risk possible?

 

Thank you

 

Nice, very proactive Wrigs, please let us know the answer, I think everyone can benefit from that info, if you use Pay Pal or not.

[GrumpyOldGuy]

lol tell him sure let him pay, wait for money to clear, withdraw said funds (which probably will never clear) and then mail it off. If legit. though seems like one hell of a scam.

 

Well Yeah, that would be my query, advise said client the money must clear first, withdraw the funds and then send the goods, which can be done within an hour of time. Obviously if funds do not clear, make it clear to the buyer you wont be sending.

 

Seems pretty simple, but.......most of us are not scammer's so we are probably missing something here.

[lloydkayak]

Awesome job Wrigs. I would be very interested to see what their response would be. Of all the "scam-like" emails I have received, this is the only one to mention pay pal. I think convies idea would be the only one to take a chance on.

 

Only thing I cant see happening is Pay Pal allowing you to withdraw the funds before the item has been sent/received, or rather that pay pal has received some sort of confirmation (buyer as well as seller protection)

[GrumpyOldGuy]

Awesome job Wrigs. I would be very interested to see what their response would be. Of all the "scam-like" emails I have received, this is the only one to mention pay pal. I think convies idea would be the only one to take a chance on.

 

Only thing I cant see happening is Pay Pal allowing you to withdraw the funds before the item has been sent/received, or rather that pay pal has received some sort of confirmation (buyer as well as seller protection)

 

Oh, okay, I dont use Pay Pal so I dont know, but what it seems like you are saying is if the buyer do's not confirm receipt of the goods you cant withdraw the funds.? So in effect the buyer could deposit good money, you send the goods, then they refuse to confirm receipt as the pay pal address and the receiving address is differant (as per Edman's post) and PAYPAL just returns the funds.?? Is that what you mean.?

[Wrigs]

Ok Guys, just got an answer from Pay Pal - It seems like you can buy seller protection but only for certain transactions. This Seller Protection (if it is applicable to your transaction) is either Full Protection or Partial Protection.

 

Full Protection - Protects you the Seller if (a) Goods don't get to the buyer or (B) the buyer is fraudulent and his payment fails for some reason. This is the one you would need in this instance

Partial protection - Only protects if (a) Goods dont get to the buyer, so not helpful in the case of a fraudulent buyer.

 

But heres the catch - Looking at the "Legal Stuff on the PayPal Website" Full Protection can only be obtained if you sell on EBay and ship directly to the address registered on the Buyers PayPal Account and not to his son at some other unregistered address. So in short - you're exposed.

 

 

Here is the response from PayPal.

 

Thank you for contacting PayPal.

 

Following the Seller Protection Policy is completely voluntary. However, if you choose to engage in transactions not covered by the Seller Protection Policy, you assume the risk associated with the transaction, as well as any potential liability.

Not all transactions are eligible for PayPal Seller Protection. If a transaction is eligible for PayPal Seller Protection, you’ll see ‘Eligible’ or ‘Partially eligible’ on your ‘Transaction Details’ page.

Here’s how to see if your transaction is eligible for Seller Protection:

• Go to www.paypal.com and log in to your account.
  
• Click ‘History’ near the top of the page.
  
• Find the transaction, and then click ‘Details.’
  
• Under Seller Protection see if your transaction is eligible.
  

Note:

• With ‘Eligible’ transactions, you are fully protected if your buyer doesn’t receive the item you shipped or if an unauthorized payment was made.
  
• With ‘Partially eligible’ transactions, you are fully protected if a buyer doesn’t receive the item you shipped. A ‘Partially eligible’ transaction does not protect you against unauthorized payments.
  
• If you don’t see ‘Eligible’ or ‘Partially eligible’ on your ‘Transaction Details’ page, the transaction isn’t protected under PayPal Seller Protection.
  

 

To learn more about PayPal Seller Protection, click ‘Legal Agreements’ at the bottom of any PayPal page, then click ‘User Agreement for PayPal Service.’

Thanks for sharing your concerns with us. We value what you have to say, and we know situations like this can be difficult. If you have more questions, visit our Help Center by clicking "Help" in the top right corner of any PayPal page.

Add your mobile number to your PayPal account so we can reach you right away if we ever need to verify account activity with you. Simply log in to your PayPal account, click "Profile" near the top of the page and then click "Update" beside "Phone."

You can also make and receive payments with your mobile phone when you add it to your PayPal account. After you confirm your number and create a PIN, you'll be able to get money, send money, check your balance, or manage your account from your phone using simple text messages.

Sincerely,

Amanda

PayPal, an eBay Company

[GrumpyOldGuy]

Okay, thanks Wrigs.

 

So basically you are exposed unless its an ebay transaction (and covers certain criteria) where you can buy seller protection.

 

So to COMPLETELY cover yourself against fraud what I have learnt is this. (Obviously not all sellers are fraudsters but we are talking fail safe here)

 

1)Transact only on ebay.

2)Only send to the registered address.

3)Only deal with transactions where you can buy complete seller protection.

 

Well, I learnt something today, thanks.

[Gareth1982]

Very Interesting I just wish I knew this 2 months ago.... I was cought out by a Scammster and I lost a 32" LCD TV. It all look legit but some how I got screwed...

[lloydkayak]

Very good info... thank you for the effort to find out.

The buyer has run for the hills but good to know for next time