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PayPal Chargeback Scam
PayPal Chargeback Scam

PayPal Chargeback Scams

PayPal Chargeback Scam

PayPal Chargeback scams take place every day and in significant numbers. With the increase in friendly fraud and chargeback, exporters find themselves in danger when accepting online payments. PayPal is the payment method for everyone. It has a longstanding status as a secure way to buy and sell goods and services online.

PayPal is among the most preferred online payment systems for buying digital services. But, unfortunately, many con artists have taken advantage of PayPal’s customer-centric practices and scammed customers with their hard-earned money. It is not surprising that PayPal is losing its charm in the long run.

PayPal is more active. With the COVID-19 pandemic sending people into the home, e-commerce has gained popularity. PayPal processed $222 billion in total payment and added 21.3 million new user accounts in the second quarter of 2020.


What Are The Common Types of PayPal Chargeback Scams?

Shipping Address

After the scammer buys something and the payment has been made to the seller’s PayPal account, the scammer will ask the seller to send their acquired item to the wrong delivery address. After many failed deliveries, the shipping company now flags the item as not deliverable. The scammer will later contact the shipping company, which then provides them with a valid shipping address.

After the scammer receives their shipment, they file a charge with PayPal, claiming they never got the delivery. However, the seller has no evidence of delivery as their transaction details show the original and invalid address. PayPal’s Seller Protection doesn’t include shipments made to addresses, not on the record, so the seller now lost both the item they shipped and the payment made to them.


Sometimes, a scammer may pay a seller’s PayPal account more than the cost of the item they are buying. Then, the scammer contacts the seller, explains that they have overpaid, and asks for the remaining surplus.

After the merchant sends back the overpaid amount, the scammer will now register a complaint to PayPal, claiming their account was hacked and didn’t pay the merchant. PayPal refunds the total original price back to the scammer, and also, if the seller has shipped out the bought item, they have still lost the money and the item.

Fake email scams

Setting up a fake email account is not a big deal today. However, millions of bogus email accounts are used for scamming people every day. Coming to the PayPal fake email scam, the scammer sends an email that appears to be from PayPal to the merchant informing that PayPal is holding funds until the seller provides a tracking number for the shipment.

PayPal does not function that way, and you should not trust these emails. The company does not act as an escrow and would not withhold funds. Instead, the scammer aims to cause panic and push you to send the tracking number. After the product’s shipment, it is doubtful that you will get the product back.

How To Avoid Paypal Chargeback Scams?

Firstly, realize that it is not easy to avoid Paypal chargeback scams. But, you can quickly recover the funds that you have lost due to the PayPal Chargeback Scams. Therefore, it would be best to contact the best fund recovery group in the world. At Financial Fund Recovery, we consider ourselves the best in the business due to our professionalism, experience, and dedication to our craft. Our team will look into the issue, have a direct consultation with PayPal, and ensure that your money reaches you as soon as possible. So, do contact us if you have been a victim of a PayPal Chargeback scam.

While it is hard to fully protect yourself from the various scams criminals come up with in the industry, you can always do things to minimize your odds of entangling yourself in one.

Tips to avoid chargebacks on PayPal:

  • Transactions with higher values should have matching billing and shipping addresses. It is not a concrete reason to back out, but it is quite a red flag you should be wary of.
  • Authentic rush shipments and do not accept partial or over-payments. Anything that wavers from the ordinary is a red flag. Investigate it thoroughly.
  • PayPal Seller Protection Program is your pal; use it.
  • Block customers who keep asking for chargebacks and file claims; they are very likely scammers.
  • Ask for signature confirmation on delivery.

How can you spot a PayPal Scammer?

The email id

Official emails from PayPal always come from Click on the address bar and check the sender’s email address; if it does not originate from the official domain, it is likely a scam.

The Greetings

Illegitimate PayPal emails tend to use impersonal, generic greetings like ‘Dear User.’ Official PayPal email would always address you by your first and last name or by your business name.

The Urgency

If it is a scam, it obviously will want you to act quickly without paying heed to logic. For example, the email from scammers often warns that your account needs an update immediately or that some dubious activity has been detected on your account.

The aim here is to put your guard down from any warning signs and act hurriedly to resolve account issues. PayPal suggests you log into your account through the official website if there is an urgent matter with your account.

The links and attachments

Be vigilant of emails that ask you to click on a link or download an attachment. PayPal never sends customers emails with attachments or links to download software. An association may appear legit but will direct you to a phishing website that will steal all your information or infect your device.

PayPal, the word in the URL is not enough for it to be the legitimate PayPal webpage. To save yourself, hover your mouse over the URL to see its actual destination, and if you are in any way suspicious, don’t click on it,

Privy to your personal or financial data

Suppose the email requests sensitive information, back out. Paypal would never send customers emails asking them to supply their full name, bank account number, password, or provide answers to security questions. They are here to con you out of your money or steal your data.

Grammatical mistakes and wrong English

Grammatical errors and spelling mistakes are often among the easiest ways to determine if an email is fraudulent. Huge organizations such as PayPal have copywriters that proofread every piece of correspondence that the company puts out. PayPal will never contact customers with emails that have spelling mistakes.

What to do if you have lost money to PayPal Chargeback Scams?

Financial Fund Recovery publishes all the reports about a PayPal Chargeback scam that exists and what you should do to prevent such frauds from happening in the first place. The downside of PayPal Chargeback scams is PayPal’s involvement, whose extreme dedication towards its customers is jeopardizing its esteem as an online payment service.

Financial Fund Recovery is the best choice for recovering your funds from any kind of scam. It includes Paypal Chargeback scams as well. We have ramped up our hiring process to cater to the needs of all customers who have been victims of such scams. Ten years of being in service, we have recovered over $19 million and worked in over 3189 cases (at the time of this article). Our team consists of the best attorneys spread worldwide who have worked with thousands of clients as of now. Our unique methodology stands out from the rest of the firms, as we devise a new one for every one of our clients regularly.

Financial Fund Recovery has researched and found that the PayPal Chargeback scam is increasing and has issued an official notice for our clients to stay safe. We recommend the same.

Don’t hesitate to contact us if you want to talk to our team of professional Paypal Chargeback recovery experts.

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