BBB Tip of the Week: Fake PayPal Emails Fool Online Sellers

Scammers send fake PayPal transaction emails targeting online sellers of high-ticket items. With a spoofed email header, the bogus email appears as if sent by PayPal when it really wasn’t.

Scammers can target local sellers through Craigslist. At the meet up for the item exchange, the con artist tells the seller that a PayPal payment was used and the seller should check their email inbox. The seller finds an email that appears to have come from PayPal, may assume it is legitimate and then give the expensive item to the “buyer.” Of course, the email was bogus.

In a different version, the scammer “overpays” through PayPal and asks the seller to transfer back the difference. When the seller doesn’t find the transaction in her PayPal account, the scammer may claim that it is an “invisible” or “cloaked” transaction. Neither of these are actual PayPal transaction types. Or if the transaction does appear to be real, the seller may find out days later that the credit card used to pay was stolen, resulting in a reversal of the transaction.

Sellers can be targeted on eBay and other online sites, not just Craigslist. Better Business Bureau offers the following tips to avoid these online cons:

Log in to your PayPal account directly to confirm payment. Don’t click a link in an email to access your account.

Don’t transfer or wire an overpayment back to the buyer or a third-party. If an overpayment appears in your PayPal account, work directly with PayPal customer service to get it corrected.

Don’t trust text messages claiming to be from PayPal. If a text says to call PayPal, don’t call the number given. Scammers are likely waiting at that number to “confirm” the fake transaction.

Don’t accept checks or money orders for items. It could be weeks before your bank can determine that a check or money order is fraudulent, with the buyer long gone. Instead insist on cash or credit card for payment.

Handle in-person exchanges at a safe location - never at home. The Spokane Police Department offers a safe-zone during weekdays at the North Precinct. Call (509) 363-8281 to confirm that an officer will be at the location before you meet up.

If you are the victim of theft, report it to your local police right away. You can help others by reporting scams at www.bbb.org/scamtracker or by calling (509) 455-4200.