paypal scams are everywhere right now, targeting buyers and sellers with phishing emails, fake invoices, and overpayment schemes. This guide explains the most common PayPal scams, how to verify real payments, and what to do if you’re targeted so you can act confidently and safely.
Key Takeaways
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Always open PayPal by typing paypal.com or using the app — never click email links for account actions.
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Forward suspicious PayPal emails or texts to PayPal at phishing@paypal.com and then delete them.
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Verify any payment inside your actual PayPal account before shipping goods or refunding money.
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Common traps include phishing emails, fake invoices, overpayment/refund scams, and package rerouting.
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The FTC reported consumer fraud losses rose sharply in 2024 — scammers are getting costlier.
What is paypal scams?
“paypal scams” refers to a range of frauds that impersonate PayPal or exploit the platform’s payment flows to steal money, goods, or account access. Scammers send phishing emails and text messages, create fake invoices, or ask sellers to refund “overpayments” that never actually cleared. These tactics all aim to trick you into revealing credentials, shipping items without verified payment, or returning funds to fraudsters.
Most of these attacks rely on urgency and social engineering: alarming messages that push you to act before you check your real account. Because PayPal is so widely used, it’s one of the most commonly impersonated companies in fraud reports.
Why do paypal scams matter?
PayPal scams matter because they threaten both consumers and small businesses. When scammers succeed, victims can lose money, merchandise, and personal data. The Federal Trade Commission says consumer losses to fraud rose significantly in 2024, increasing both the scale and sophistication of scams — which means everyone needs better verification habits.
For sellers on marketplaces, a single overpayment or fake-payment scenario can mean losing the item plus the buyer’s money. For buyers, credential theft via phishing can lead to unauthorized charges or identity theft.
How can I recognize and stop paypal scams?
Spot phishing emails and texts
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Look for generic greetings, spelling errors, odd sender domains, and urgent demands.
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Never click links in an email or text that claims you must “confirm” or “restore” your account — go to paypal.com yourself.
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Forward suspicious messages to phishing@paypal.com; PayPal requests you send the full email — don’t edit the subject.
Verify payments before you act
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Log into your PayPal account directly (not via email links).
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Check “Activity” for the actual transaction and confirm the status is “Completed.”
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If the buyer asks you to refund or ship before the transaction clears, pause — it may be an overpayment scam.
Use security best practices
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Enable two-factor authentication (2FA).
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Keep your device and browser updated and use reputable antivirus software.
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Don’t accept unusual payment flows (e.g., Friends & Family for goods) — that removes purchase protection.
What are real-world paypal scams? Examples and scenarios
Below is a comparison table of common schemes, how they work, and a safe response.
| Scam type | How it works | What to do |
|---|---|---|
| Phishing email/text | Fake message asks you to “verify” or “lock” your account and includes a link to a spoof site | Forward to phishing@paypal.com, delete, and log in at paypal.com to check account. |
| Fake invoice | You receive an invoice for goods/services you didn’t buy | Don’t call numbers in invoice—log into your account to check requests. |
| Overpayment/refund | Buyer “overpays” and asks you to refund the difference; original payment later reverses | Confirm funds are cleared in PayPal before refunding. |
| Package reroute | Buyer gives a fraudulent shipping address, then redirects the package | Ship only to the address on the platform/PayPal record; require tracking to that address. |
| Friends & Family trick | Buyer requests Friends & Family to avoid fees and protections | Refuse — insist on Goods & Services so you have PayPal protection. |
These patterns are common in 2024–2025 reports and remain active today; security researchers and news outlets continue to document new phishing campaigns targeting PayPal users.
What mistakes do people make with paypal scams?
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Clicking links inside emails or texts without verifying the sender.
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Shipping goods before confirming a payment is marked “Completed” in PayPal.
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Refunding “overpayments” without checking account transaction history.
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Using Friends & Family when selling — it removes buyer/seller protections.
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Calling phone numbers listed in suspicious emails — those often connect to fake “support” lines.
Avoid these mistakes by building one habit: always verify in your PayPal account before taking money-related actions.
Can avoiding paypal scams help long-term?
Yes. Building verification habits reduces the chance of losing money and limits identity theft risk. For small businesses, consistent use of PayPal’s buyer/seller protections, clear shipping policies, and documented transaction checks can cut disputes and chargebacks. Also, reporting phishing and scam messages quickly helps PayPal shut down malicious campaigns sooner, protecting the wider community. The FTC’s data shows that losses are rising year-over-year, so prevention is both personal and civic.
Conclusion — What to do next when you see paypal scams
If you get a suspicious PayPal message, forward it to phishing@paypal.com and delete it. Then log into your PayPal account directly and confirm any transactions before replying, shipping, or refunding. If you’ve already lost money or suspect account takeover, contact PayPal support from the official site and consider filing a report with your local fraud authority. Prompt reporting helps everyone and reduces the cost of scams overall.
Expert insight
The FTC’s 2024 data showed consumer losses to fraud climbed to roughly $12.5 billion, a notable increase over 2023 — a reminder that scammers are adapting quickly and that verification habits are essential.
FAQs
What should I do if I clicked a link in a suspicious PayPal email?
Change your PayPal password immediately, enable 2FA, scan your device for malware, and forward the email to phishing@paypal.com.
How do I report a PayPal scam or fake invoice?
Forward the suspicious email or text to phishing@paypal.com and delete the original message; then check your account directly at paypal.com.
Is an “overpayment” request always a scam?
Not always, but it’s a common scam pattern. Never refund until you confirm funds are cleared in your PayPal activity. If unsure, contact PayPal via the official website.
Can PayPal reverse a completed payment?
Yes — PayPal can reverse payments for unauthorized transactions or chargebacks, which is why you must verify the payment status in your account before shipping. Check PayPal’s policy pages for details.
Who else should I report scams to?
Report significant losses to your country’s consumer protection agency (e.g., FTC in the U.S.) and local law enforcement; in the UK, Action Fraud documents trends like QR “quishing” that affect payment safety.
