PayPal has been around long enough that most people assume it’s safe by default. And it mostly is — when used the right way. The problem is that scammers have had two decades to figure out exactly where PayPal’s protections end and their tricks begin. Some of these scams are so common that PayPal support reps deal with them hundreds of times a day.
Thinking your account is too small to be a target? Think again.
This article will cover 9 PayPal scams to watch out for this year, how they work, and how to avoid handing your money to someone who doesn’t deserve it.
1. The Overpayment Scam
A buyer sends you more money than the agreed price and asks you to refund the difference. The original payment was made with a stolen card or hacked account. When PayPal reverses the fraudulent payment, the “extra” you refunded comes straight out of your pocket. If someone overpays you and asks for a partial refund, cancel the entire transaction and start over.
2. Fake PayPal Emails Claiming a Payment Is Pending
You sell something online and the buyer says they’ve paid. Then you get an email from “PayPal” confirming the payment — except it’s not from PayPal. The email looks nearly identical but comes from a slightly off address. Always check your actual PayPal account dashboard, not the email, before shipping anything. Real payments show up in your account, not just your inbox.
3. The Friends and Family Trick
A buyer asks you to accept payment through PayPal’s “Friends and Family” option instead of “Goods and Services.” The reason they give is usually that it saves both of you on fees. What it actually does is remove all buyer and seller protection. If something goes wrong — on either end — PayPal won’t step in. Never use Friends and Family for any transaction that isn’t with someone you actually know and trust.
4. Shipping Address Manipulation
The buyer pays for an item and then asks you to ship it to a different address than the one on their PayPal account. After you ship, they file a claim saying they never received it. Since you shipped to an address that doesn’t match the PayPal transaction, you lose the dispute automatically. Always ship only to the address listed on the PayPal payment confirmation — no exceptions.
Read also: More payment security tips
5. Phishing Links in “Account Suspended” Messages
These messages claim your PayPal account has been limited, suspended, or flagged for unusual activity. They include a link to “verify” your identity. The link takes you to a fake PayPal login page that steals your email and password. If you ever get a message like this, open PayPal directly in your browser by typing paypal.com — don’t click the link.
6. Fake Invoice Scams
Scammers use PayPal’s own invoicing system to send you an invoice for something you never ordered — often a high-dollar purchase like a cryptocurrency buy or an antivirus subscription. The invoice looks legitimate because it’s sent through PayPal’s real system. People panic and call the phone number on the invoice to “cancel,” and that’s where the real scam starts. If you didn’t order it, just delete the invoice.
7. The “Your Account Will Be Closed” Scare
An email or text warns that your PayPal account will be permanently closed unless you confirm your information within 24 hours. The time pressure is deliberate — it’s designed to make you click without thinking. PayPal does occasionally request verification, but they don’t threaten to close your account in 24 hours via email. Log in directly to check.
8. Item-Not-Received Fraud by Buyers
You sell something, ship it with basic shipping, and the buyer claims they never received it. Without tracking that shows delivery to the buyer’s address, PayPal sides with the buyer. Always use tracked shipping with delivery confirmation for anything sold through PayPal — no matter how small the item. The cost of tracking is cheaper than losing the item and the money.
9. Tech Support Scams Using PayPal
You get a call or email saying there’s a problem with your PayPal account and a “technician” needs remote access to fix it. They’ll ask you to install software like AnyDesk or TeamViewer. Once they’re in, they can access your PayPal (and everything else on your computer) directly. PayPal will never ask for remote access to your computer. Ever.
How to Stay Safe on PayPal
Most PayPal scams rely on one thing — getting you to act before you think. The fix is almost always the same: slow down, check your actual account instead of trusting messages, and never send money or ship items based on a screenshot, an email, or a phone call. PayPal’s protections are solid when you use them the way they’re designed. The scams happen in the gaps people create by cutting corners.