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Paypal reversal scam

It appears that a recurring Paypal scam is taking hold for many Paypal sellers, where Paypal are quick to empty legitimate sellers accounts, initiated by scammers requesting fake refunds!

It’s relating to a standard Paypal payment ‘reversal’ request. The victim appears to have just three days to spot the email request from Paypal before the payment is removed from his or her account.

The scam appears to work like this. The recipient waits for a few days after the unwitting seller (in this case on Ebay) has sent the goods. Then he or she claims the goods have never been received plus claims that his or her Paypal account must have been hacked in order for the payment to have been made.

Paypal responds to these allegations by sending out a string of emails – all of which look like phishing attempts – demanding the vendor log into his or her account and provide more details.

After a short period – possibly as little as three days (including the weekend) – Paypal makes a full refund to the supposedly aggrieved purchaser. Leaving the seller high and dry.

Aboutpaypal.org has well documented accounts of users in similar situations - Paypal must be well aware of the problem yet there are no ‘options’ in the standard online and call centre menu systems for reversal victims to follow.

A spokesperson for Paypal said the company is investigating the problem.

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2 Comments

  1. ast July 21, 2010

    After a short period – possibly as little as three days (including the weekend) – Paypal makes a full refund to the supposedly aggrieved purchaser. Leaving the seller high and dry.

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  3. HotNoob July 15, 2011

    it is a real problem…
    i’ve lost over $780 is the last 2 months due to reversals >.

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