Scammers are wise to how PayPal investigates fraud and as a result, PayPal users are falling into new traps, according to a Which? report.
For example, if a customer makes a buyer protection claim, PayPal will usually accept a tracking number from the merchant as proof the order really has been fulfilled.
“To get around this, scammers send something cheaper that you didn’t order just to generate a tracking number making it look like a legitimate order, and the customer’s claim is rejected,” said Which?
Laura Kimbar told Which? that PayPal would not refund her when she received a “cheap manicure set” instead of the £35 decoration she ordered for her wedding.
Kimbar said, “PayPal rejected my claim and sided with the company that scammed me. I lost my money and never got what I ordered.”
While PayPal’s buyer protection policy agrees that customers are not liable for unauthorised purchases, what happens if you transfer money directly to another PayPal account but it turns out to be a scam?
The report highlighted the case of another PayPal related fraud victim. Charlie Cross, who booked an Italian holiday home and paid £800 using PayPal, assumed that he was protected if something went wrong. However, after sending the money, the hosts disappeared.
“PayPal told me it only covers unauthorised transactions. I tried to make a claim with my bank, but they said because I authorised the payment using PayPal, that they couldn’t help,” said Cross.
What does PayPal Buyer Protection actually cover?
PayPal’s Buyer Protection covers customers for a variety of scams. Examples include if a wrong item or a knock-off is received, or a delivery was missing major parts.
However, according to the Which? report, PayPal did not confirm whether or not it protects customers who unwittingly transfer money to scammers.
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