15 PayPal Scams in 2024 and How to Avoid Them

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15 PayPal Scams and How to Avoid Them: An Overview

In 2024, PayPal scams are rife. Worse, PayPal provides a direct link to your bank account. If you’re not clued–up on the latest PayPal scams, an account breach can lead to significant losses. It could even result in your other personal accounts being exposed.

So, it’s time to understand the 15 most common PayPal scams and how to avoid them:

1. The fake problem with your account scam
2. Fake promotional offer scams
3. Money waiting scams
4. Advance payment scams
5. Shipping address scams
6. Hacked account warnings
7. The Friends & Family PayPal scam
8. Overpayment scams
9. Payment pending scams
10. Fake charities scam
11. Callback phishing emails
12. Locked or suspended account warnings
13. Malicious fake PayPal invoice attachments
14. Bitcoin PayPal scams
15. Fake PayPal order confirmations

Fortunately, all of these scams can be avoided with a little awareness and a powerful all-in-one security suite that:

• Blocks malicious websites
• Scans files for malware
• Keeps all your data safe with encryption

After extensive research and testing, we found that Surfshark One checks all of these boxes and is an effective security tool to keeping you safe against PayPal scams.
Get Full Protection With Surfshark One

Keep reading to learn more about PayPal scams, how to avoid them, and what to do if you get scammed.

PayPal is a payment giant that makes online transactions super easy. According to Statista, there are more than 431 million active PayPal accounts worldwide. However, since PayPay has a direct link to your bank account, you can become a prime target for cybercriminals pushing PayPal scams.

It only takes a moment’s lapse in judgment to hand your PayPal details to scammers. Then, they can bleed your account dry. So, we’ve compiled a list of the most common PayPal scams to look out for. By combining our tips on how to stay safe on PayPal with a powerful privacy tool like Surfshark One, you no longer have to worry about scammers getting hold of your data.

15 Most Common PayPal Scams to Look Out For

If you learn how fraudsters usually operate on PayPal, you’ll be better protected if they ever target you. Scams typically involve PayPal phishing emails and fake websites designed to look like PayPal. But scammers’ tactics are evolving. That’s why we’ve gathered the 15 most common PayPal scams to watch out for in 2024.

Below, we take a deep dive into each scam and how you can avoid it.

1. The fake problem with your account scam

Scammers have been using email for decades. You’ll receive a phishing email saying that there’s a problem with your PayPal account and this is what can happen:

1. When you open the email, there’ll be a link asking you to log into your PayPal account.
   
   
2. The link takes you to a spoofed PayPal website.
3. When you enter your credentials, the data is transferred to the scammers.
4. The scammers have everything they need to access your PayPal account.

How to avoid fake account problem scams

Log into PayPal directly – never click on links in suspicious emails. Instead, forward them to phishing@paypal.com. And use Surfshark One. Its effective scanning feature can detect malware hidden in files and allow you to delete them on the spot.

2. Fake promotional offer scams

This PayPal email scam involves an email offering a cash rebate or some other financial incentive.

1. The emails we’ve seen tell you to log in to your PayPal account to verify your details and claim the money.
2. Just like other email scams, the link in the email directs you to a fake PayPal website.
3. If you click on the link and enter your login credentials, the scammers can hack your account.
4. Scammers can now transfer money from your bank account to make high-value purchases.

How to avoid promotional offer scams

As above, don’t click on suspicious links. Send the message you’ve received to phishing@paypal.com to help PayPal beat scammers.

Take Action!

Enable two-factor authentication on your PayPal account as soon as you finish reading this article. Even if somebody gets your password, they won’t be able to access your account.

3. Money waiting scams

Most PayPal users only use the website as a temporary place to hold money in between transactions. Scammers prey on this idea by pretending you’ve forgotten to withdraw funds. This is the process regarding money waiting scams:

1. An email tells you that you’ve received money in your PayPal account.
2. You’re encouraged to click the link to get your funds.
   
   
3. The link in the PayPal scam email directs you to a fake PayPal login page.
4. If you input your PayPal credentials, the scammers can access your account.
5. Some of these links may automatically download malware.

How to avoid money waiting scams

Don’t follow the links within the email. Forward the message to phishing@paypal.com. You can log into PayPal directly to see an overview of your balance.

Avoiding malicious links in PayPal phishing emails isn’t the only way to protect yourself. We recommend safeguarding your device with a security tool we have extensively tested, Surfshark One. As well as the powerful anti-malware tool, you’ll get one of the best VPNs that encrypts all your personal data.

4. Advance payment scams

Who doesn’t like receiving an unexpected windfall? This scam plays on your emotions, telling you that you’ve won, inherited, or are entitled to a large sum of money. This is what usually happens:

1. You’ll receive a phishing email.
2. You might be asked to click on a link and log into PayPal.
3. Once logged into PayPal, you’re expected to send money via PayPal to cover transaction fees or some other fake expense.
4. If you send the money, it’s gone. It could also make you a more likely target of future scams.

How to avoid advance payment scams

Don’t respond to these emails or click on any links. Forward the email to phishing@paypal.com.

5. Shipping address scams

PayPal can make you a target for shipping address scams. There are several common PayPal scams that involve shipping addresses, such as:

• The buyer wants to use a specific shipping method: You’ll be asked to use a particular shipping company. If you agree, the scammer can reroute the package elsewhere and then claim a refund.
• You’re sent a shipping label by the buyer: We recommend declining these in most cases. They can use this method to reroute the package, too.
• You’re given an invalid delivery address: The package can’t be delivered, so the buyer provides a new address. Because the package is rerouted, the scammer can claim they didn’t receive it.

Since the final delivery address won’t match the invoiced address, PayPal will usually refund the scammer. While PayPal offers seller protection in these cases, it’s only when you can evidence delivery to the invoiced address on the Transaction Details page.

How to avoid shipping address scams

Take pictures of the item and packaging before mailing it, and use a recorded and tracked delivery. Send the item to the address shown in “Transaction Details.”

6. Hacked account warnings

A malicious buyer might use a hacked PayPal account to pay you:

1. You receive payment for an item you’ve sold.
2. You don’t know the account was hacked, so you ship the product once payment is confirmed.
3. When PayPal discovers the breach, they withdraw the funds from your account.
4. You’re left without your product and the funds paid to you.

How to avoid hacked account scams

Unfortunately, you can’t prevent this. But you can protect your account. Enable two-factor authentication and use the PayPal app to sign in with biometrics on your smartphone.

Also, get Surfshark One, one of our best antivirus software, to detect malicious websites and files before they can infect your device.

7. The Friends and Family PayPal scam

Sometimes, a scammer will ask you to transfer money using PayPal’s Friends and Family option, and this is what can happen if you do that:

1. You pay for something with PayPal Friends and Family.
   
   
2. The scammer stops replying or blocks you.
3. You reach out to PayPal for help, but they refuse – Buyer Protection doesn’t cover these payments.

How to avoid Friends & Family PayPal scams

Don’t use the PayPal “Friends and Family” option to pay for anything online.

Important Notice:

Only use Friends and Family payments for money you’re not expecting back. Here are some examples:

• Gifting money to a family member to help them out
• Splitting the cost of a meal after a friend has paid the bill
• Sending gas money to a friend who gave you a lift home

8. Overpayment scams

PayPal overpayment scams are one of the more sophisticated PayPal refund scams we’ve seen. This is what they involve:

1. A buyer purchases something from you and sends you more than the sale price.
2. They claim it was a mistake, asking for a refund on the difference.
3. They’ll ask you to send the refund directly to a bank account to avoid fees.
4. You send the overpayment back to their bank.
5. The scammer disputes the original transaction on PayPal.
6. PayPal refunds them the full amount, and the money you sent them outside PayPal is gone.

How to avoid overpayment scams

Keep all transactions within the PayPal platform. If somebody asks you to transfer money outside of PayPal, report them to the company.

Take Action!

If you find yourself targeted by a potential overpayment scam, cancel the entire transaction. Never send money to another source than the one it came from, and report it to PayPal if you think it’s fraud.

9. Payment pending scams

Here, a scammer lies about a fake payment that they’ve supposedly made to you through the following process:

1. You receive a message from a scammer who says they’ve bought your item.
2. They tell you that PayPal won’t release the money until you provide a shipment tracking number.
3. If you do send it, the scammer disappears with your item for free – they haven’t actually paid for it.

How to avoid payment pending scams

Never send an item until you’ve received confirmation of a payment and can see the money in your PayPal account.

10. Fake charities scam

Scammers often use PayPal to con kind-hearted people out of donations. This is what this PayPal scam involves:

1. Scammers set up fake websites or GoFundMe pages and ask you for contributions via PayPal.
2. You make a contribution, but it goes straight into the pocket of a scammer.

How to avoid fake charity PayPal scams

Check the charity’s website. If it looks suspicious, it’s best to avoid it. A charity without a website is a red flag.

Pro Tip:

Before you make any charitable donations through PayPal, verify that the charity is legitimate. There are several websites that do this, including Charity Navigator and Charity Watch.

11. Callback phishing emails

In this PayPal email scam, an email warns you of “suspicious transactions” in your PayPal account through the following process:

1. The email will urge you to call a number to cancel the transaction. It’s actually a scam call center.
2. They’ll try to get your PayPal login details or other personal information.
3. If you stay connected, they may direct you to a malware-infested website.

Aside from the risks above, you might also have called a number with an extortionate toll charge.

How to avoid callback scams

Make sure to only contact PayPal using the number on the website. Never use phone numbers or email addresses within a suspicious email.

Important Note:

PayPal will never ask you for your login details, as their systems allow them to view transactions. They may ask you for personal information to verify your identity (such as your name), but that’s all.

In case you’re tricked by this scam and led to a site that contains malware, it is best to be prepared. We highly recommend using one of our best online security providers, Surfhark One.

12. Locked or suspended account warnings

When you get an email suggesting your PayPal has been limited, you might be tempted to react to avoid identity theft. PayPal scams involving locked accounts usually include the following process:

1. You receive an email suggesting your PayPal account is restricted or locked.
   
   
2. The link takes you to a spoofed PayPal website.
3. If you input your credentials, they’re stolen by the scammers.
4. If you call the listed number, it’ll connect you to a scammer.

How to avoid fake suspended account warnings

Don’t click on the links. If you’re worried about your account, log into the website by typing the address into your browser.

13. Malicious fake PayPal invoice attachments

PayPal invoice scams come in the form of a phishing email and usually include these steps:

1. You’re sent a PayPal scam email with an image showing that you owe money.
   
   
2. If you click on the link, you’re taken to a spoofed PayPal website, which could infect you with malware like a computer virus.
3. You might be asked to input PayPal login details or payment details, which are stolen.

How to avoid fake invoice scams

Forward the email to phishing@paypal.com. Never click on the links or the image in the email.

14. Bitcoin PayPal scams

Since you can now buy Bitcoin with PayPal, scams regarding this purchase aren’t dissimilar to other PayPal phishing scams. The following is what can happen with Bitcoin PayPal scams:

1. A scammer sets up a fake PayPal business account for a Bitcoin trader.
2. They send you a fake invoice for a Bitcoin purchase with advice to call a number if you dispute it.
3. If you call, the number will charge a high rate per–minute, or the scammer will try to con you.

How to avoid PayPal Bitcoin scams

Ignore the invoice – PayPal invoices are requests for payment, not confirmations. Forward the email to phishing@paypal.com. Never call the number listed in the email. If you want to speak to a human, get the number from PayPal’s site.

15. Fake PayPal order confirmations

A fake PayPal payment confirmation is designed to make you act without thinking. This scam involves the following steps:

1. An email suggests you’ve paid for something you know nothing about.
   
   
2. You’re encouraged to contact support if you have questions.
3. You may be tempted to call immediately – but you’ll be speaking to scammers.

How to avoid fake order confirmation scams

Log into your PayPal app or the secure website. If the transaction isn’t there, it’s a scam.

PayPal scams often result in costly malware infections. Installing Surfshark One is one of the best ways to prevent this. But don’t worry. It comes at a very affordable price, costing you much less than the scam above.

Will PayPal Refund Me if I Get Scammed?

PayPal offers two types of safeguards: Buyer Protection and Seller Protection. But not every transaction is covered.

PayPal Buyer Protection

If a qualifying transaction (physical goods) goes wrong, the buyer is entitled to a full refund. Buyers have 180 days to dispute a transaction, provided:

• You paid with PayPal
• You paid in a single transaction
• Your account is in good standing
• You’ve filed the dispute within 180 days

PayPal Seller Protection

Businesses accepting PayPal for goods or services may retain the full purchase price when certain criteria are met, including:

• Having a primary PayPal address in the United States
• Selling tangible, physical items
• Shipping only to the address listed on the Transaction Details page
• Providing valid proof of shipment or delivery

So long as you can prove delivery, you should be safe from PayPal scams as a seller with Seller Protection.

How to Protect Yourself From PayPal Scams

Phishing emails are one of the most common PayPal scams. To keep you safe, we compiled a list of the six telltale signs of a PayPal phishing email:

1. Instilling a sense of urgency: Phishing emails manufacture urgency to get you to do something you wouldn’t ordinarily do. Don’t fall for it. Take your time, read emails carefully, and only use PayPal’s official website.
2. Including links or attachments: As a rule of thumb, don’t click links or download attachments from emails. You can quickly find yourself on a fake website loaded with malware like keyloggers, for example, that record your keystrokes and send your information to hackers.
3. Having a suspicious display name or email address: The email may appear to come from PayPal, but that can be faked. Look at the actual email address used. Click or tap on the sender’s display name. PayPal only uses the @paypal.com email domain.
4. Not addressing you by name: Legitimate emails from PayPal will always include your actual name (exactly as shown on your account). Other greetings or an incorrect name indicate a scam attempt.
5. Asking you to add sensitive information or download apps: The PayPal security center states that PayPal will never send you an email asking for sensitive information like your password or payment details. They’ll never ask you to download or install software, either.
6. Containing poorly written email text: Phishing emails generally have grammar and spelling mistakes. Contrary to popular belief, that’s usually on purpose. Poorly written text is like a filter for gullible victims.

8 tips on how to avoid PayPal scams

Staying safe on PayPal isn’t difficult. It only takes a little awareness and a security mindset. Below, we’ve listed eight tips for keeping yourself and your account safe:

1. Don’t send money outside PayPal if you have transacted on the website. If you receive an overpayment, cancel the whole transaction and start over.
2. Always use your own shipping method. When you choose the shipping method, you control delivery. Choosing your own shipping method will keep you safe.
3. Only ship to the address on the Transaction Details page. Sending your package anywhere else can put you at risk and invalidate the requirements of PayPal’s Seller Protection program.
4. Block package rerouting with your shipping company. Contact your shipping agency and add this layer of protection to every shipment. The buyer can’t interfere with your delivery.
5. Only deal with verified buyers and sellers. Verifying a PayPal account requires sharing personal information with the platform. This makes verified accounts unlikely to be scammers.
6. Be wary of email links and attachments. Don’t click on email links, even if they look legitimate. Logging in to your PayPal account directly in your browser or app is much safer.
7. Install an antivirus. Some PayPal scammers will try to place malware onto your computer. Never download anything sent to you via email, and use reliable antivirus software.
8. Don’t give out personal information on a call. We’ve had some readers ask, “Does PayPal call you?” The answer, in most cases, is no. If you think you need to speak to a human, hang up and call the number listed on the official website.

Our review on the safety of PayPal found that the website is secure. But even that can’t protect you from deceptive scams that originate outside the platform. Get a powerful security suite that’ll back you up if you make a mistake.

We have thoroughly tested Surfshark One’s VPN and antivirus package and highly recommend it as an additional protection measure against PayPal scams.

PayPal Scams: How Do I Report a PayPal Scammer?

Worried you’ve been scammed on PayPal? Here’s what you need to do next:

Type of Fraud	What to Do
Fake PayPal email or fake PayPal site	You’ve received what you believe is a fake email from PayPal: Forward it to phishing@paypal.com. Delete the email. If you clicked on any links and/or provided any sensitive information, log into your PayPal account and check for suspicious activity. Change your password. The email you’ve received seems to be a legitimate email from PayPal: Log into your PayPal account via browser or app. Check your Message Center. This is where legitimate emails from PayPal regarding issues with your account (along with steps to fix the situation) will appear.
Unauthorized account activity	If you sent a payment but didn’t get what you expected, shipped an item and never received payment, or think the other party is a scammer: Scroll to the bottom of any page and click “Resolution Center.” Click “Report a Problem.” Select the transaction you want to dispute and click “Continue.” Select “I didn’t receive an item I purchased…” or “I want to report unauthorized activity.” Click “Continue.” Follow additional instructions provided in PayPal’s Resolution Center.
Fraudulent transaction or buyer/seller	If you sent a payment but didn’t get what you expected, shipped an item and never received payment, or you think the other party is a scammer: Scroll to the bottom of any page and click “Resolution Center.” Click “Report a Problem.” Select the transaction you want to dispute and click “Continue.” Select “I didn’t receive an item I purchased…” or “I want to report unauthorized activity.” Click “Continue.” Follow additional instructions provided in PayPal’s Resolution Center.

If you think you’ve fallen victim to a PayPal scam, immediately change your PayPal password – preferably from another device. While you’re there, enable two-factor authentication and change your PayPal security questions.

We recommend using a good password manager to create strong and unique passwords for every account and prevent hackers from gaining access.

Our top password manager recommendation is 1Password. Its advanced encryption and secure file storage will keep your passwords away from prying eyes.

Prevent Getting Scammed on PayPal

Scammers can and do target PayPal users. Fortunately, the tactics used are as old as time. Phishing emails, bogus phone numbers, spoofed websites, and malware are all easily overcome. Cybersecurity software offers a powerful line of defense.

While the best way to protect yourself against PayPal scams is to be vigilant, an all-in-one security package has your back if you make a split-second bad judgment call that can lead to your sensitive data being stolen. Surfshark One’s security suite has everything you need to safeguard yourself.

Pay close attention to any email you receive. Never click on suspicious links within any email, and remember that official PayPal communications will always address you by name. Don’t use Friends and Family transactions for business payments, and don’t refund people outside of PayPal.

If you want to find out more about how to stay safe online, check out some of our other articles:

• What is Help Desk Fraud?
• Crypto Pump and Dump Scams Explained – How to Avoid Them
• QR Code Fraud: What is it and How Can You Protect Yourself?

15 PayPal Scams and How to Avoid Them: Frequently Asked Questions

Check out our list of the most frequently asked questions we receive about PayPal scams. If you still have questions, drop us a line. We’re always happy to help.

How do I know if a PayPal email is real?

Legitimate PayPal emails will always have certain hallmarks, including:

• Directly addressing you by your real name in the body of the message
• Originating exclusively from an @paypal.com address
• Using correct grammar within the message

Scammers can spoof PayPal email addresses. Be sure to check the email address of the sender – click on the the display name to see the actual email address the message came from.

Will PayPal refund me if I'm scammed?

PayPal offers two protection programs: Buyer Protection and Seller Protection. If you fall victim to a scam, visit PayPal’s Resolution Center to file a complaint. PayPal will follow up with additional steps and provide you with advice.

Remember, the best defense is awareness and a powerful all-in-one security suite like Surfshark One. Check out our Surfshark One review to see how this tool can protect you.

How do I report PayPal scams?

Go to PayPal’s Resolution Center to file a formal complaint about any questionable transaction. If you receive a fake PayPal email, forward it to phishing@paypal.com. If you come across a scam we haven’t listed here, please let us know so that we can add it to our article!

Does PayPal refund money if I'm hacked?

You may get a refund for lost money in certain circumstances, under Buyer Protection and Seller Protection. Buyers must file their dispute within 180 days from an account in good standing. Sellers must be claiming against physical items and have shipped the item to the address on the Transaction Details page.

Always keep proof of tracked shipping if you’re selling items using PayPal.

How do I report PayPal phishing emails?

If you believe you’ve received a fake PayPay email, forward it to phishing@paypal.com. If the email remains in your inbox, you can mark it as a phishing scam. Otherwise, delete the email so that you won’t accidentally interact with it in future.

Does PayPal call you?

In most cases, PayPal won’t call you. There are some exceptions, such as if they’re chasing unpaid debts to the company. But still, it’s too risky to hand over payment details to an inbound caller. If you think you might have a reason to speak to PayPal, call them yourself – even if it means ending the call and finding an official number on the website.

Chris Bluvshtein Author

Senior Journalist

Chris is a tech journalist with many years’ experience covering online privacy and cybersecurity. He’s also a published author and works as a Product Manager for some of the most innovative software development companies.

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