Protect Yourself: Common PayPal Scams to Watch in 2025

PayPal continues to dominate online payment processing, providing users with a convenient way to manage transactions. However, its popularity makes it a prime target for fraudsters. In response to increasing scams, experts from the financial news site Think Save Retire have outlined the most common PayPal scams anticipated in 2025 and offer advice on how to avoid falling victim to these schemes. Their insights have been shared with Digital Journal, complementing PayPal’s own guidance on cybersecurity.

The Most Common PayPal Scams of 2025

One of the prevalent scams involves a phishing email regarding a fictitious problem with your PayPal account. Scammers typically craft messages that appear legitimate, urging recipients to click on a link and log in to resolve the supposed issue. This method, known as the “problem with your account” scam, is a classic social engineering tactic aimed at stealing login information.

Another common approach is the “promotional offer” scam. Victims receive emails claiming they are eligible for cash rebates or rewards. To claim this incentive, they are instructed to log into their PayPal accounts, but the link directs them to a counterfeit site. Entering their credentials on this fraudulent platform allows scammers to access their accounts.

The “advance payment” scam preys on emotional triggers. Victims are informed they have won a large sum of money or are entitled to an inheritance. However, before they can receive these funds, they must first send a small payment to cover fictitious transaction fees. Once the payment is made, the scammer disappears, leaving the victim with a loss.

Another tactic involves engaging on the genuine PayPal platform. Scammers may request that sellers ship items using their preferred shipping method. This scheme can lead to disputes where the buyer claims non-receipt, leaving the seller without their item or funds. Related scams include buyers providing fake shipping addresses or asking sellers to accept pre-paid labels that reroute deliveries.

Additionally, scammers may attempt to exploit PayPal’s Friends and Family payment option. While this method eliminates transaction fees, it also voids buyer protection. Payments made through this option for goods leave sellers vulnerable to fraud, with little recourse available if a dispute arises.

The “payment pending” scam involves a buyer claiming to have made a payment and asking for a shipment tracking number before releasing funds. In reality, the buyer is fraudulent, and once the seller ships the item, they lose both the product and the payment.

Scammers also take advantage of charitable donations during crises. They set up fake charities and solicit contributions through PayPal, preying on individuals’ goodwill and desire to help.

Lastly, the “callback phishing email” scam involves a notification about suspicious activity in a PayPal account, usually linked to large transactions. The email prompts the recipient to call a provided number to cancel the transaction, which actually connects them to a scam call center seeking sensitive information.

To protect against these scams, users are advised to exercise caution. The most effective prevention method is to avoid clicking on links in emails, even if they seem credible. Instead, users should log into their PayPal accounts directly through a web browser or app.

Dr. Tim Sandle, Editor-at-Large for Digital Journal, emphasizes the need for vigilance in the digital payment landscape. As online transactions become increasingly common, understanding these scams is crucial for safeguarding personal financial information.