How to Recognize a PayPal Invoice Scam
You receive an invoice through PayPal for something you didn’t purchase. PayPal allows any user to send you an invoice, even if you didn’t buy anything from them. If someone sent an invoice without you ever ordering a product or service, then it’s most likely a scam. PayPal invoices may appear in regular currency, or in cryptocurrency such as Bitcoin.
You get an invoice email that looks official but isn’t sent from PayPal. Scammers that get your email address may send you a message that’s formatted to look like an invoice. They may say that you owe a large amount of money, and provide fake support links or numbers to contact. Double-check the email address to see if it’s from PayPal or a scammer trying to get your personal information. Invoice scams may still come from an official PayPal email address because users send them through the website. If you don’t recognize the purchase or product, then it’s still a scam.
The invoice has alarming language or fake contact numbers. When you read through the text of the invoice, scammers usually try to exaggerate to make you click or interact with it. They may try to make the request sound urgent by listing a large amount of money or saying you need to reply within a few hours so you’re more likely to interact with it. Example: A common invoice note may say “Thank you for your subscription to XYZ services! Please pay immediately or contact support,” followed by a fake website link or phone number.
How to Avoid PayPal Invoice Scams
Avoid paying any invoices you don’t recognize. Whenever you think you’re dealing with an invoice scam or don’t know the other user, don’t send them any money through PayPal. If you fulfill the invoice and it ends up being a scam, then you may lose that money without a chance to have it refunded. Err on the side of caution. If you have any doubt about the invoice you received, then don’t send money or enter any payment information.
Don’t click on any links or call any phone numbers listed on the invoice. Links and phone numbers in PayPal scam invoices usually redirect to sites or scam call centers that try to find out your personal information. Even if an invoice message looks official, avoid interacting with it. If there are links in the invoice, hover over them without clicking on them. Check the URL that pops up at the bottom of your browser window to see the link’s true destination.
Report any fraudulent invoices to PayPal. Log in to your PayPal account, and select the invoice scam from the Dashboard or Activity section of your profile. Tap on “Report this invoice” and follow the on-screen instructions to finish filing your report. On the PayPal mobile app, tap on “Payments” followed by “Bills” to find any invoices you were sent. Unfortunately, only the user who sent the invoice can cancel it. It’s okay to leave unpaid invoices on your account while you report them.
What to Do if You’re a Victim of an Invoice Scam
Change your passwords and security questions for your online accounts. If you accidentally gave out any login information for your bank, email, or other accounts, immediately visit the sites where you use those credentials. Create a new, secure password for each of your accounts so scammers are unable to log in and access your information. If you have the option, change any security questions you listed as well. Avoid reusing the same password for different accounts so they’re more secure. If a website allows it, turn on two-factor authentication (2FA) for an additional layer of security. When someone tries to log into your account, they also have to enter a unique code that’s sent to your phone or generated in an authenticator app.
Run antivirus software on your device to remove any viruses. If your computer is behaving oddly after following a link in an invoice scam, run a malware scan using Windows Security or Malwarebytes on Mac. The scan will detect any software that’s harming your computer and uninstall it right away to prevent any information from being stolen. Some common signs of malware are pop-up windows, slow or poor performance, unusual error messages, and computer crashes. Keep your computer updated with the most current version because they usually have stronger malware protection.
Monitor your PayPal and bank statements regularly for fraudulent activity. Check your PayPal and any linked bank accounts each day after falling for a scam to monitor the transactions. If you notice any charges showing up that you didn’t make, immediately contact the support or fraud protection team to let them know you’re not the one making the transactions. You may have to file an official dispute with your bank or with PayPal in order to prove that you aren’t the one making the transactions.
Recognizing and Avoiding Other Common PayPal Scams
Advance fee fraud Scammers may try reaching out to you promising to send you a large amount of money, but they’ll ask you to send a small amount to them first to cover fees or legal documents. However, after sending them money, they will disappear and won’t send what they promised. How to Avoid It: Avoid deals that sound too good to be true and avoid sending money to people you don’t know. Some scammers ask for payments to invest in CoinBase or Bitcoin if you send a small amount of money and promise large returns.
Overpayment scams A scammer may send more money than required for a product or service, and then immediately ask for a refund back. They may say the money was for shipping costs or a tip. Many times, the scammer is using stolen payment information, and all the money could get withdrawn from your account after a fraud report. How to Avoid It: Cancel orders where someone has overpaid, or avoid sending money to users that you’re unfamiliar with.
Prize winning scams Scammers may reach out and tell you that you’ve won a large cash prize or lottery even if you didn’t enter a contest. They may ask for your personal information or bank info and claim it’s so they can transfer funds, but they actually just want to access your accounts. They may even ask you to send money before you’re able to claim your prize. How to Avoid It: Avoid contacting people who claim to have prize winnings, and don’t send money to them.
Fake charity scams Some people may start a PayPal account or reach out to you claiming they are a charity that needs donation funds. However, the scammer will keep the money they receive instead of putting it toward a good use. How to Avoid It: Check if the charity is legitimate using sites like Charity Navigator or the Better Business Bureau (BBB), and avoid sending money to anyone that seems suspicious.
Shipping scams If you’re sending a product, a scammer may ask you to use their own shipping account instead of yours. Once you’re using their account, they could contact the company with a complaint asking for a refund. Because you won’t have their shipping confirmation, you can be out of a product and any money the scammer paid. How to Avoid It: Always use your own shipping account when you send products to someone else online.
Prepaid shipping label scam When a scammer places an order, they may ask you to use a shipping label they already paid for instead of paying shipping charges. If a scammer uses their own label, the package could ship anywhere and may not be covered by Seller Protection. The label could also be purchased with stolen payment info. How to Avoid It: Use your own shipping labels, and always send packages to the address listed on the Transaction Details page.
Package rerouting scam When a scammer places an order, they may provide a fake shipping address. When the shipper tries delivering the order, the scammer reaches out with their real address to receive the product. They then can file a dispute because the package wasn’t delivered to the listed address, and they could potentially get a refund even if they received the product. How to Avoid It: Contact any shipping companies you use and have them block anyone else from rerouting packages you send.
Reshipping packages scam Many scammers reach out with a fake job reshipping expensive products, like electronics or clothes. They’ll send you items that could be addressed to other people, and ask you to ship them to different locations. The scammer may provide prepaid shipping labels and potentially ask you to ship things out of the country to avoid getting caught themselves. How to Avoid It: Avoid reshipping any packages. If you are already receiving packages, refuse the delivery or have them returned to the sender. Report the scam to the Internet Crime Complaint Center].
Employment scams Some scammers may reach out promising a new job opportunity if you send them a small fee for supplies. They may claim to have the perfect job that requires a small amount of work, but won’t go into any details until you’ve made a payment. Once they receive money from you, they won’t follow up any further. How to Avoid It: If a job sounds too good to be true, then it’s probably a scam. Don’t respond to these messages and only list your own information on your PayPal account. Also, be alert if the job asks you to ship large items overseas or to the same address repeatedly.
Friends and Family payment scams A scammer may ask you to use a “Friends and Family” payment when you’re sending money, which doesn’t have any Purchase Protection on it. They may claim to be a government agency or pretend to be romantically interested in order to convince you into payment. How to Avoid It: Always use the “Goods and Services” option when you’re sending money to someone that you’re unfamiliar with.
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