New Scam Method using Alias in Paypal

[10yearsfornothi]

Hello everyone, 

I would like to inform about the new way to scam using paypal alias cause it can be easily done using disposeable email since paypal not requiring any verification to use alias in new paypal account.

The tragedy happened like this :
1. Scammer will find prey in the used market sector where payment through "friends and family" are commonly used to avoid extra taxes.

2. They will have an account with legitimate name and highly reputable also (probably hacked account), in my case "Adrian [Removed]".

3. Knowing that the account is highly reputable, most seller will automatically believe the seller by paying using "friends and family" method.

4. Then PayPal also support the scammer to mask their email or real identity by having alias functionality, in this case his paypal name is "[Removed]", which will sound legitimate since his high reputable account on the website and paypal are having the same name.
5. There is no way to check if the seller account are "verified" or getting the real "email" address while sending the payment to the seller, so you will find out about the scam unverified account with disposable email only after sending the payment.
6. Once the payment has been sent using "friends and family", the money is gone and unfortunately no support will help you clarify the case.
7. Don't forget to report to police if you're having the same case, because the scammer must transfer the money from their PayPal account somewhere, so i hope that every scammer can be detected and prosecuted anywhere in this world.

I just wish that PayPal take security more serious by letting people to verify seller legitimacy before sending the money to them, whatever sending option is used.
Letting people know if the money recipient account is "verified" or "not verified" will be a huge leap forward already.
Every PayPal-User will be more cautious to send money to anyone that are "not verified".
Banning the use of PayPal for unverified user in general will also solve the problem, i hope my experience can help you all and PayPal may learn from it.

Please stop supporting scammer new scam method in PayPal.

[10yearsfornothi]

Few Option that PayPal can implement to avoid scammers acting freely :
1. Limiting new account / unverified account to spend or transfer the balance for 30 days on every new transaction, so dispute can still be made within the timeframe. Using/transferring balance instantly only for verified member

2. As mentioned above, giving information about "verification status" of recipient for the sender on every transaction

Any of this option implemented will already reduce scamming activity massively in PayPal.

[kernowlass]

@10yearsfornothi 

Why would you pay with the friends/family option if they were not a friend or family member???

Paypal warns you on both the app and on the web when you go to pay that you have no buyer protection !!!

A friends / family (or gift payment) is intended as a transfer of funds from family or friends to one another. For this reason, there is no processing fee when payment is made with bank or PayPal balance.
However as it is a gift payment, there is also no buyer protection as no goods or services should have been exchanged.

If he was not a close mate or family member you should never use that option as it enables the seller to evade paying his Paypal fees and negates your buyer protection at the same time.

You would also not be able to open a dispute (apart from one citing an unauthorised transaction), which would be automatically closed as you did authorise the initial payment.

To avoid being scammed just don't break their rules by using the friends/family option to pay for goods or services, your call. 

[10yearsfornothi]

All your explanation is clear and i take the loss getting scammed, but it still doesn't clear the question why paypal hide the verification status of account until any transfer or payment has been done.
It is clearly helpful to anyone having any transaction to know it beforehand who they are going to do transaction with.

My post is meant to let people know about the current scam method so less people get scammed by it.
A lot of people in secondhand market are against paypal "goods and services" since also scammer around who buy stuff and open dispute telling that item never been delivered or broken after delivery to demand refund and keep the item regardless, that's how a lot of secondhand seller are against it.

Still whoever pay as friends and family bare the risk and totally correct, just mentioning the helpfulness if people can get the verification status of scammer before having any transaction with them.

[Su-Wong]

There should be some way of reporting the PayPal account they have used, so if someone tries to send a payment to them in the future, they are blocked from doing so, and therefore stopping a scam from occurring whether it be a friends & family payment or otherwise!

[fcopr]

The same thing happened to me with a $2500 transfer to a name almost identical to the one I wanted to send the cash they only added an "S" at the end of the last name, I didn't catch that. But they did send them money even though the email was totally different than the one on my recipient. Paypal supports this kind of scams, and even beleive is someone inside their institution that know the tricks.

[10yearsfornothi]

Yes, unfortunately no action at all to reduce amount of scamming activity at all in the platform, since paypal earn money also from it no matter it's scam or real.