PayPal fraud, ( Online fraud )

One of the ways that commonly committed online- especially in online auctions (eBay auctions)- is PayPal fraud. In which this post will try to cover what and how this kind of fraud is committed by fraudsters and how you can avoid PayPal frauds

What is PayPal?

PayPal is one of e-commerce business types that allow its customer to transfer money and do payments through the internet. This process governed by the customer account in which it can be funded with electronic money from the customer bank account or credit card. For more details visit PayPal site

What is PayPal fraud?

Ø  One of the common types that fraudsters adopt nowadays is by buying an item from an online auction (eBay auction), which followed by paying through PayPal, then they ask the seller to arrange an appointment to collect the good or product; after this process fraudsters make a claim (challenging the selling process) to PayPal that they did not receive the good or product from the seller. In which PayPal is entitled in such case to refund the buyer (fraudster) if the seller did not has a shipment tracking number (in which in this case he/she did not), however, it should be noted that PayPal does not accept video evidence or signed documents as an evidence except a shipment tracking number as its policy states. In result, the fraudster will end with an item without paying anything in return

Ø  Other common fraud, is that when some fraudsters (especially from Nigeria) send to the seller an email from eBay or from PayPal (scam email) telling him/her that this person (fraudster) has bought the item or has paid via PayPal, in which the seller, therefore, must ship the item to that buyer (fraudster). In this case, if the seller was not careful he/she will do what that email says and end without any return for his/her item

How to avoid PayPal fraud?

1.      As a seller you must check the policy of PayPal before start using it, (read it and understand it)

2.      Specified exactly how the buyer will get the item, whether by shipping it or he must collect it, as this tool will help you to avoid any misunderstanding or fraud

3.      Do not give away the item without taking a confirmation from the buyer and send it to PayPal, in case the buyer collected the item

4.      It is recommended to handle the shipment rather than asking buyers to collect what they bought, in order to gain an effective evidence which is the shipping tracking number

5.      Do not act directly if you received an email before checking, (make sure that the sender and the content are genuine by accessing your eBay account or PayPal account and look for the selling order or payment)

6.      Do not replay to people you know for sure that they are fraudsters

7.      Inform PayPal directly or eBay about any suspicious person

8.      Inform your local authorities about any suspicious person or activity

9.      If you have been a victim of such kind of fraud then you must inform your local authorities about the fraud directly

Finally I hope that this post can be useful and helpful, please leave your comment or question if you have any

Mohammad Al-Thunibat

M & T