Beware of PayPal Scams: Learn to Protect Your Finances

Fraudsters are increasingly targeting PayPal users in 2025, capitalizing on the platform’s popularity for online transactions. According to tech experts at the financial news site Think Save Retire, understanding common scams can help users safeguard their accounts against potential threats. These insights have been shared with Digital Journal, complementing PayPal’s own guidelines for enhancing cybersecurity.

Identifying Common PayPal Scams

Several scams have emerged as particularly prevalent this year. One of the most insidious is known as the “problem with your account” scam. In this case, individuals receive phishing emails claiming that there is an issue with their PayPal accounts. These emails typically contain a link that directs users to a fraudulent login page, where their credentials can be harvested.

Another widespread tactic is the “promotional offer” scam. Victims receive emails that promise cash rebates or financial incentives but require them to log into their PayPal accounts to claim the reward. Similar to the previous scam, these emails lead to fake websites designed to steal login information.

Emotional manipulation is at the heart of the “advance payment” scam. Scammers send notifications claiming that the recipient has won money or is entitled to an inheritance, but must first send a small payment via PayPal to cover fictitious transaction fees. Once the victim sends the money, the scammer disappears.

Shipping Scams and Payment Manipulation

For those engaged in online sales, various shipping-related scams pose a significant risk. In one scenario, a buyer requests to use their preferred shipping method, which allows them to reroute the package after it has been shipped. They then file a claim with PayPal, falsely asserting that they never received the item, leaving the seller without the product or the funds.

Another method involves the buyer providing a pre-paid shipping label, which enables them to reroute the package to a different address and subsequently claim non-receipt. Additionally, some buyers may provide fake shipping addresses, complicating the seller’s ability to prove delivery.

Scammers may also exploit the “Friends and Family” option on PayPal. While this feature eliminates transaction fees, it also removes buyer protection. Payments made under this option offer no recourse against fraud, making it a risky choice for purchasing goods.

The “payment pending” scam further complicates matters for sellers. A buyer claims to have made a payment but insists that they cannot receive the item until a shipping tracking number is provided. If the seller complies, they may find themselves out both the product and the payment.

Scammers have also turned to charitable giving, especially during times of crisis. They create fake charities and solicit donations via PayPal, preying on the goodwill of individuals looking to help those in need.

Finally, the “callback phishing email” scam involves sending an email warning users of suspicious activity in their PayPal account. Victims are urged to call a provided number, which connects them to a scam call center aimed at collecting sensitive information.

To protect oneself from these scams, vigilance is essential. Users are advised to avoid clicking on links in emails, even if they appear legitimate. Instead, accessing PayPal directly through a browser or app is recommended for account management.

As online transactions continue to grow, awareness and proactive measures are key to ensuring financial safety. Dr. Tim Sandle, Editor-at-Large for Digital Journal, emphasizes that understanding these tactics is crucial for anyone using digital payment platforms.