PayPal has mostly displaced all other payment options in e-commerce. Customers like the convenience of making purchases with just one login rather than continually entering their credit card details, including the expiration date, security code, and billing address.
Since so many consumers choose to use PayPal and it’s very easy to incorporate into an existing checkout page, most e-commerce businesses now accept it as one of the accepted payment alternatives.
PayPal is a behemoth in the online payment processing sector, handling billions of transactions annually and boasting an estimated 400 million customers. Due to the high volume of transactions, PayPal is a popular target for fraudsters looking for a rapid reward. However, the security problem’s root is not where you might think.
Despite its advantages, PayPal still has one thing in common with regular credit card transactions: fraud. Like any other payment processor, PayPal deals with a constant stream of scams and attempts to take money from other people’s purses. Let’s discuss the most common PayPal account hacking schemes and how e-commerce companies may prevent falling for them.
What is A Hacked PayPal Scam?
The hacked account scam is a subclass of an overpayment scam. In this instance, the buyer is making a payment using a compromised PayPal account. The buyer gets the goods, but you might have to give the money back to the real account holder. The item and the money you spend will be lost in this scenario.
The Scam: PayPal will send you an email claiming to have placed money into your account. When you log in, the money is already there. You ship the item.
The Reality: A few weeks later, PayPal notified you that the money was fraudulently taken out of your account.
What Happens: Scammers exploit other people’s accounts to make payments. PayPal reimburses the money in specific circumstances after learning about the compromised account.
How to Avoid Hacked PayPal Account Scams
Identifying when a customer has hacked an account is difficult. Additionally, there isn’t much you can do to influence the outcome or avoid the circumstance. It is typical for the shipping address and the buyer account information to differ.
Direct communication with PayPal is your best bet. All vendors that use PayPal are protected from merchant fraud. Contact PayPal if you think there is a discrepancy between the desired mailing address and the payment account information. The business will look into the matter and contact the customer to confirm the facts. Delaying shipment of any products until the problem is fixed is also recommended.
To assist confirm the account and buyer match, you could also wish to contact the buyer directly using the email address connected to the PayPal account.
If you’re a victim of a similar scam please get in touch with us to that we can help you get your money back!
Lost money to online fraud? We will recover your funds !
What Can You Do to Keep Your PayPal Account Safe From Hackers?
Enabling two-factor authentication is one of the simplest methods to safeguard your PayPal account (and all other online accounts, for that matter) (2FA).
Using a security key (you will receive a code through text message each time you log in) or a third-party authenticator software, like Google Authenticator, are the two options PayPal gives to set up the second level of authentication for your account.
Free Wi-Fi at airports, train stations, and coffee shops might seem a terrific way to conserve cell data when travelling. However, when using a public computer, you may never be sure if someone is looking or, worse still, recording everything you type. It’s crucial to take precautions for your safety while connecting to public Wi-Fi because there are several risks associated with utilising it, especially when communicating critical financial information. It is advised to avoid using any public Wi-Fi hotspots to access your PayPal account to protect your account information’s security. Stick to utilising your mobile data if you need to check your PayPal balance or complete a transaction.
Security risks are always changing, and software companies often update their products to fix newly found problems. Update your P.C., smartphone, and apps whenever a new software version becomes available. These updates usually include patches dealing with fresh security risks or flaws. Not updating your software puts your system at unnecessary risk for security breaches.
Although it is quick and simple, connecting your PayPal account to your bank account or debit card is a hazardous step. If hackers manage to access your PayPal account, they will have little trouble draining your bank account, frequently before you are even aware that it has happened. The extent of the bank’s response will depend on your banking institution. There may be times when you have absolutely no options. Your bank account will be secure if you connect your PayPal account to a credit card, though. You have extra protection, such as the ability to speak with your credit card provider immediately about any fraudulent transactions. You may also do this by filing a dispute with PayPal directly.
Anyone with an email address can sign up for a PayPal account, even scammers. However, to demonstrate the reliability of their account, respectable buyers and sellers go through the extra step of becoming verified. Verification entails giving PayPal more identifying information. Scammers frequently refuse to give up or lack personal information, such as a social security number (in the United States). You considerably limit the possibility that the party you are transacting with is an imposter by only working with PayPal verified accounts.
Using strong, unique login credentials is one of the simplest methods to safeguard your PayPal account (and every other online account, for that matter) in the modern internet world. Even if you frequently use your email address as the username, each account should have a unique password. A password manager is helpful in this situation. You can create very complicated passwords with just the click of a button, whether you use a password manager provided by a third party or the one that comes with your preferred browser. Additionally, you’ll be able to safely keep your new passwords and quickly auto-fill them whenever you need to log in to an account.
Never let PayPal handle your money transactions in a “set it and forget it” fashion. You should routinely log in and monitor the balances and transactions in PayPal, just like your other bank accounts. When fraudsters acquire access to your PayPal account, they frequently start making several modest transactions to test the account. If those are successful, fraudsters proceed to larger transactions that can quickly empty your account. Keep a tight check on your account so you can see any strange behaviour early and take immediate action. It doesn’t take long to log into your account and look for errors. If you make it a habit of doing this regularly, you can stop a potential problem in its tracks before it becomes a major issue.
Apply for a VPN. All of the data you transfer over the internet while using a Virtual Private Network is encrypted by the VPN service provider. Whenever you need to access your PayPal account, this provides an extra layer of security to your information. The best VPN for PayPal is ExpressVPN, which we advise.
Paypal! Paypal! Paypal! Along with its many benefits comes a few pitfalls such as scams and hacking!
While Paypal does offer buyers and sellers a straightforward, useful, and safe way to conduct currency exchanges with practically anybody, anywhere, the risk of getting your account hacked also increases, therefore always safeguarding your Paypal account from scammers and hackers! To maximise your protection when using PayPal, it’s essential to know how thieves could try to steal from you using the service. Your account will be safeguarded if you are aware of the most typical PayPal scams and know how to avoid falling for one.