Scammers use a nasty trick to get you to send them money using PayPal. We’ll tell you how you can protect yourself from the consequences of the scam.
A PayPal function is being abused for fraud. (Source: InkDropCreative/depositphotos.com)
PayPal is one of the most used online payment services worldwide. When making payments online, you should be able to rely on extensive protection. You will be offered the options “Goods and Services” and “Friends and Family”. The latter has recently been exploited more and more often by fraudsters to use a nasty trick to steal a lot of money from you.
The scam involves a person contacting you via email and stating that they have mistakenly made a payment to your PayPal account. This is actually true, as you will see when you look at your account. The person therefore asks you to transfer the money back using the “Family and Friends” option.
Money away with a nasty trick
This may sound plausible and harmless at first, but there is a bold attempt at fraud behind it. The cybercriminals transfer the money to you via the “Goods and Services” function. Payments made this way are covered by buyer protection and can be requested back under certain conditions. This does not apply to the “Family and Friends” feature.
So if you transfer your money back to the fraudsters via “Family and Friends”, they simply contact PayPal and claim that an ordered delivery did not arrive. You will then receive the “accidentally” transferred money back from your account. The criminals make double the profits and you lose your money.
Since in-person payments are not covered by PayPal Buyer Protection, the chances of you getting your money back are slim. Reporting to the police is not hopeless, but it is very time-consuming. If you fall victim to the scam, it is important that you act correctly.
The public news program ZDF WISO has also already reported on the PayPal scam and offers helpful instructions on its Instagram account:
This is what you do if you make an incorrect transfer
If you have been mistakenly transferred money, whether by fraudsters or strangers, you should never use the “Family and Friends” function. Instead, select the appropriate payment and click “Send Refund”. PayPal will then take care of everything else and you don’t have to worry.
The ZDF today news program also recently dealt with the nasty PayPal rip-off and asked security researcher at Leibniz University Hannover Anna Lena Fehlhaber about the right course of action: The expert said the following:
“The general rule is: stay calm. People make mistakes because they panic and want to solve things quickly. They then behave the way fraudsters want them to. […] “Always click on ‘Reverse transaction’, never start new orders.”
Security researcher at Leibniz University Hannover Anna Lena Fehlhaber in conversation with ZDF today
You should really only use the “Family and Friends” option with people you know and trust. When paying for online purchases or other business transactions, you use the “Goods and Services” function so that you are really protected. There are transaction fees, but you should accept this for your security.
Especially on platforms such as eBay, Vinted or classifieds, buyers and sellers often request to use the “Family and Friends” payment option. You should not comply with this request. There is too great a chance that it is an attempted fraud.
Also take a close look at the PayPal links from online shops. Fake shops trick you by presetting the “Family and Friends” payment function. In most cases, the goods you paid for never arrive and your money is gone. That’s why it’s important to always keep your eyes open to detect cyber threats in good time.
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