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Paypal Fraud - Bitcoins or digital products

Contributor

Paypal Fraud - Bitcoins or digital products

Dear all,

 

I received a chargeback a few days ago (I sold bitcoins on a trading platform). But the sending account was a hacked one, so the real user claimed an unauthorized access. I received all user details of the hacker (IP addresses, e-mail and so on), althoug it might be a VPN from Nigeria and a fake mail address.

The transaction reached me in the resolutions center, and even if I sent all the user information and details about the hack (the hacker even told me after asking that it was a hack on purpose, doing this for years, without having issues ever) it was just closed.

 

So it was closed and I will now transfer the money to fill funds again (it's about 200 Euro).

 

is there anyone I can ask about the details why this happened, why my justification was useless? The resolution center only has more option to verify with shipping details, shipping receipt and so on, which no one has on any digital products.

 

Sure, they might just say "hey, we don't like bitcoins so don't bother us", but this would have happened on any E-Book, Webdesign, Wordpress-Theme as well as a digital product never has anythink like a "shipping address" which is verified due to just creating hacked mail accounts.

 

 

Regards,

Andy

7 REPLIES
Volunteer Advisor

Re: Paypal Fraud - Bitcoins or digital products

@lordandy

 

An unauthorised dispute means the account holders paypal account has been hijacked and used without their consent.

 

If thats true then paypal re-pay them that payment back again.

 

BUT you would be covered by seller protection and reimbursed by seller protection.

 

However seller protection does not cover intangible or digital content, you can of course sell them but at your own risk.


Advice is voluntarily given.
Kudos / Solution appreciated if I helped you.
Contributor

Re: Paypal Fraud - Bitcoins or digital products

Hello @kernowlass,

 

totally fine that Paypal is giving the hijacked account the money back - as long as they verify his password was not "paypal" Smiley Happy

 

Regarding seller protection - good to know, I did not know this is not for digital products. So everything I sell in digital is not protected by any feature/product? This would even mean I can purchase stuff by myself (like wordpress themes) and just chargeback the money, and the seller will also not have any protection?

 

Regards,

Andy

Volunteer Advisor

Re: Paypal Fraud - Bitcoins or digital products

@lordandy

 

Just read up on seller protection then you will be aware of when you are covered and when you are not.

 

But the biggest area of scams we see on here is with digital / intangible items, very risky.

 

I for one would not accept a card payment or paypal for selling them but I guess its hard to find an option fair to both parties that evades the scammers    Smiley Frustrated


Advice is voluntarily given.
Kudos / Solution appreciated if I helped you.
Volunteer Advisor

Re: Paypal Fraud - Bitcoins or digital products


@lordandy wrote:

 

 

So everything I sell in digital is not protected by any feature/product? This would even mean I can purchase stuff by myself (like wordpress themes) and just chargeback the money, and the seller will also not have any protection?

 

Regards,

Andy


 

No, there would be investigations of course by PayPal and the credit card company.  Your log in history and account activity and the recipient's too can be checked to verify whether your claim is valid.  And if you abuse the disputes process, it can be suspended on your account.  A lot of this is because the cybercriminals got access to stolen identity and financial info.  So do not be under the mistaken impression that you can go doing this with your own account.


Kudos are greatly appreciated. Smiley Happy

Re: Paypal Fraud - Bitcoins or digital products

Seller Protection does not cover transactions involving Bitcoin.  One of my recent case responses below.

 

The disputed amount has been debited from your PayPal account because of the following reason(s):

 

  • Intangible items are not covered under Seller Protection.

 

In addition, you have been debited a $20.00 USD chargeback fee.

 

Contributor

Re: Paypal Fraud - Bitcoins or digital products

digital/virtual goods,services,real estate,auto,financial instruments and customs orders are not covered.

Note - services rendered,if you give a massage,haircut,IT work,legal work ,you are not covered as you cannot prove delivery.

However some seller would follow up with a hard copy and mail it with tracking.

New Community Member

Re: Paypal Fraud - Bitcoins or digital products

Hello everybody, Me too had problem with PayPal chargeback fraude. I sold bitcoins in localbitcoins.com and I have proofs,the buyers paid me via PayPal, I accepted because I knew that PayPal is the most secure way but after a few days I have been choked by the unilateral decision of PayPal to restrict my account without my contentment, when I asked them they say they don't protect bitcoins sales and the transactions were without PayPal account holders authorisation. I can say that this the real fraude and illegal way to treat users, I lost about 3000 $ and still have to pay 2260 $ to make my account positive,it's unbelievable. Dear friends we should cooperate to stop this PayPal fraude or to find a great lawyer to defend us then PayPal will change his way to protect seller obligatory , I wait forward to hear your ideas and suggestions Thank you.