Paypal Scam: Friends and Family Payment for a goods transaction

kcflanders
Contributor
Contributor

Has Paypal ever assisted anyone who was scammed by being asked for Friends and Family Payment for a goods transaction?

Paypal is very aware of this scam, for the average user the first time they've even heard of this time of transaction is when another member asks for them to send them money in that form. Usually something like "hey, can you send the money as friends and family? I can drop the price a couple bucks since I won't be charged the fee." 

 

Paypal can easily eliminate this problem by requiring a person to check a box acknowledging, 

  1. This payment is not for a good transaction. 
  2. I am aware I have no ability to dispute this transaction once sent.

So why has Paypal made this so easy for scammers?

What actions will Paypal take if there is a problem?

What are the chances a State Attorney General might take some action to make the two bullet points above happen?

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119 REPLIES 119

kernowlass
Esteemed Advisor
Esteemed Advisor

@TonyS3 

 

The clue is in the name.

Are they are close mate............no.

Are they a family member............no.

Are you purchasing goods........yes.

Are you purchasing a service.....yes.

 

So which would you select?


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Tsoilihoi
Contributor
Contributor

Tony, The use of a pay site really needs clear direction... changing the labels is confusing as it was to my friend.  Using the current scheme for a transaction to a non paypal.me member is certainly adequate  and I see no reason why because of the desire to promote a protection plan that the plan which is connected to a business transaction be set as the default check mark. Moreover, that there was any need to change.  Simply adding business transaction and friends and family to the appropriate dialog boxes is an easy fix.  When I called a rep, she put me on hold for 10 minutes trying to understand it herself.  My post was to give PayPal a heads up that problems have and may continue to arise.  Maybe I'll just stick to Venmo.

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TonyS3
Contributor
Contributor
Is your response meant to be curt or helpful?
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Tsoilihoi
Contributor
Contributor

I didn't title this post Paypal Scam and I didn't/don't mean my response to be anything but helpful.  My concern was born out of an inadvertant error by a friend who didn't understand where or what to click.  In trying to get help, the reps couldn't explain it and did not know that the dialogs change for those using the paypal.me alias.  In looking deeper and seeing that protection plan dialog was not only unclear but was checked as the default.  I also felt that 'trusted' person does not automatically translate to friend or family and it seems that the whole thing could be helped by including business transaction and friends and family would really help.  No I am not being sarcastic or rude.  PB

 

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TonyS3
Contributor
Contributor
Thank you for the clarification. That is why I asked.
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Tsoilihoi
Contributor
Contributor

Great..  part of the frustration now-a-days with companies is the reliance of bulletin boards to solve problems and to bring to the surface software or process problems.  Although helpful, its been my feeling that support people should be on the front lines of product and services support.  Sometimes things are flat out wrong or broken and the notion that enough people need to vote or complain to right the situation is not necessarily the best route.  Sometimes issues need to be dealt with and understood in a more stat manner.  This to me is important so that the developers can move on an issue faster.  🙂

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kernowlass
Esteemed Advisor
Esteemed Advisor

@TonyS3 

 

Take it however you want.

Advice is given take it or leave it, if it saves you being scammed then thats a plus.


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Shazybear
Contributor
Contributor
I can't believe I'm writing this over 5 years later and they've STILL not done anything. I've just had the exact same thing happens to me, and I told them over the phone "it wouldn't be so difficult putting a sentence underneath to remind us we are not protected" I mean, isn't that the whole point of PayPal. And this is such an easy route for scammers. PayPal is almost promoting it - as its such an easy and guaranteed way to get money. Yet still they turn a blind eye
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kernowlass
Esteemed Advisor
Esteemed Advisor

@Shazybear 

 

Are they a mate/friend = NO

Are they a family member= NO

 

So how hard can it be to work out you don't use that option to paying for goods and services?


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doneanddead
Member
Member

@kernowlass 

You are being rather condescending to what is clearly an ongoing problem. I recently got scammed via the friends and family route, and I find it infuriating that you try to hide behind their terms and conditions, and then choose to blame the consumer. If there is a loophole that scammers are repeatedly abusing, it should be on the company to close that loophole. I was told to choose the friends and family option, I even wrote 'friends and family' under the notes section, because I never knew it was a thing. I've barely used PayPal over the years, and the only times I have, it has never been anything that had me choose an option. When it popped up, I felt excited I found it and simply clicked it. Nothing more to it. People do not realize the ramifications of their action until after it has become apparent it is a scam, and a well-known scam at that.


You are saying that it should be on the consumer to read all of the fine print in every single document and, yet you know full well you don't do it yourself. This is actually becoming a problem in the courts, and some countries are striking down terms and agreements when they expect too much of the consumer, or there is an implied right that should be apparent to protect the consumer.

If such a course of action is a known way for scammers to rip someone off, why can't PayPal realize that, "Hey! You've never sent money to this person before!" and pop up a message that says, "This is a tactic for a common scam. Are you sure you want to proceed?" Or maybe they should make the option only pop up after a number of transactions with someone? Or maybe make the option harder to find, rather than pop up straight into your face? 

The worst part of all this, is that a lot of the people here commenting claim to have proof they were scammed, some with as much evidence as the scammer saying, "Hahahaha. I scammed you! Now you can't do anything about it! Hahahaha." How much clearer proof could they possibly ask for? The case is open and shut by self admittance of the scammer. But when they bring their cases to PayPal, they are met with a shrug, a finger pointing to a few key lines, and someone like you saying, "You're so dumb! You should've read it! We're just going to let them keep scamming people, because there is clearly nothing we can do on our side to end something like this!"

At the very least, PayPal could file charges with the proper criminal branches and freeze that person's PayPal account because they are scammers. I mean, if they're doing it to thousands of people a year, there's no way they're "Friends and Family" to thousands of people! But again, this logic is met with PayPal simply wiping their hands of the whole issue and saying, "It's not my problem. Y'all just dumb. Better luck next time suckers!"

At the very least, there should be some way to escalate it to a criminal matter if it is blatantly obvious it is a scam, and that this person routinely scams people that are just as clueless. It can't be that hard for a body like PayPal to do that. What I don't understand is why they haven't already fixed this issue, and your covering for a negligent company isn't making anything better. In fact, I'd say it only works to infuriate people even more and form bad opinions of the company. Myself? I doubt I'll ever use PayPal again because of this and I can't be the only one.

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