Paypal Scam: Friends and Family Payment for a goods transaction

[kcflanders]

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?

[Emm3rs]

Well said

[DPCreations]

I've always wonder why potential buyer trust and believe a seller when when the seller requests friends/family payment.  It's as if they believe sellers set PayPal policy.

In reality, it is the seller who is well versed in PayPal polices, it is the seller who is savvy, smart, and knowledgeable.

Buyers need to be become the expert in all things PayPal.  Buyers are the only ones who can change that.

[Emm3rs]

Paypal is actually better than anyone else as far as buyer protection. At any time when you were making the transaction, you never asked yourself why the seller requested you send the money via friends and family ? I'm not trying to be rude I'm simply honestly wondering why so many people just agree to pay that way without common sense telling them that the request seems out of the ordinary...whether you've ever used PayPal or not . To me the request would send a red flag...

[Simon53612]

I understand what some of you are saying here, that if something bad happens it serves people right for not reading terms and conditions. However I think that’s a bit sanctimonious. Who can honestly say that they have read the terms and conditions for every transaction or interaction they’ve ever read? Who has spent the hours needed to read through Apple’s T&Cs. Not everyone has the time or diligence to read everything. And it works both ways. You may well be in breach of contract law. If the matter went to court it may not be upheld. So in regards to everything being logical and legally required, I think if you read every single piece of contract agreement for each relatively trivial transaction then you have a very unusual mind, and have a lot of time. Life isn’t binary and especially not what counts as ethical. Bear in mind too that sometimes it is minors who fall for this trick, and they may not understand what they’re doing (whether that is legal, misguided, stupid or lazy). I agree, it is not difficult to code pages on a web site to offer a warning before confirming the purchase. Think how many websites ask you to confirm that you are giving permission to use your details. One major difference is that not doing so means they can be fined. But that’s by-the-by. It’s not okay to trick people. It’s easy to say what people SHOULD do. Arguable if someone does anything with a degree of risk, then it serves them right if it goes wrong. But is that reasonable? Is it practical? Is it realistic? You decide. Wouldn’t humans have become extinct if we didn’t take risks ever?

[kernowlass]

@Simon53612 

I think the clue is in the name, are they a member of your family...no, are they a close mate...no.............there you go.

[Simon53612]

Maybe. But is a “clue” enough? Rather than making people guess (intelligently, I concede), if it’s easy to do so (and is), why not make it plain? Are you implicitly saying that people get scammed because they’re too stupid to follow a clue?

[kernowlass]

@Simon53612 

Click send money > put in email address > you have TWO OPTIONS.

1. Are you sending to a mate or family member..........err no, ok i won't use that option.

2. Are you paying for goods or services..........err yes, ok i'll use that option. Especially as underneath it says I'm covered by buyer protection.

If you can't work that out then its very sad that you were scammed but to be honest can't see how it can be made anymore obvious.

[Simon53612]

Okay. I think it can be more obvious. It doesn’t need to leave people to deduce from that chain of actions that they are unprotected. Similarly even if they do work it out, it doesn’t excuse someone for scamming them.

[Saraaugust540]

Take into account that some to most people don’t read the terms and such. Not only that I was completely unaware of the fact that there was the option to begin with let alone that it was unprotected. So while I’m glad you are not going to fall for the same scam I did. And I don’t appreciate the fact that I came forward about it and admitted it something most people won’t die because they are embarrassed, and that you tried to belittle others because of it. I understand you believe it’s obvious but it’s not to everyone so I ask that you atleast try to be respectful because you are essentially calling anyone who’s had this problem stupid when I can assure you that even the smartest people fall for scams.