Hi everyone!
You've seen a lot about the protection that PayPal offers buyers and sellers. The measures described in these articles cover a lot of situations, especially where the circumstances are beyond your control.
But what about scams? How do you avoid getting into situations where your risk exceeds the scope of the available protection?
The best protection of all is information. By equipping yourself with knowledge and perspective, you can develop the skills to avoid being taken in by a scammer. These skills will help you in any environment - within PayPal or without.
Fraudsters can exist anywhere, so it's important to turn a critical eye on business opportunities before getting involved, no matter what the venue!
For example, whenever you're offered an opportunity with an abnormally large return on investment, it's important to really scrutinize the business model and find out exactly what you're getting into. Dig down deep and ask yourself a few questions:
- What does this supplier get out of the deal?
- Why do they need you to redistribute if they're on the level?
- What is the potential for loss here?
Even if the potential for loss seems low, keep in mind that scams sometimes involve continued investment to recover lost funds, each investment "guaranteed" to salvage the last one. People keep throwing good money after bad in a frenzied scramble to hopefully recover their funds, and sometimes end thousands of dollars in the red.
Also consider that if there doesn't seem to be any financially sound reason for a vendor to need you to act as a middle man, there may well be a legal reason. Is there a potential that someone may be involving you in defrauding someone else? You may want to consult with an appropriate business/legal professional in your area.
For more information about keeping yourself safe, please take a look at the following resources:
PayPal Security Center - http://www.paypal.com/securitycenter
The PayPal Security Center describes the protection that PayPal offers. By making sure that all your activity conforms to the requirements listed, you'll ensure that your transactions are safer. The first step to protection from fraud is to prevent it from ever occurring in the first place. There's also a link there to read some more tips for keeping yourself safer.
Department of Justice - http://www.onguardonline.gov
This resource has descriptions of common scams, and instructions for reporting and fighting them.
National Fraud Information Center - http://www.fraud.org
The National Consumer League's Fraud Information Center website has additional tips for avoiding fraud.
Internet Crime Complaint Center - http://www.ic3.gov
If you find yourself the victim of an online scam, this is great resource for reporting.
Wikipedia - http://en.wikipedia.org/wiki/Advance_fee_fraud
This article describes one of the more common types of scams on the internet. It's a useful tool for knowing what to look out for so you can avoid it. Just remember, this is only one of many scams.
Olivia
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