Payment Fraud Guide
PayPal Scams
PayPal is trusted — which is exactly why scammers exploit it. From fake invoices that arrive from real PayPal servers to overpayment tricks and chargeback fraud, this guide covers every variation.
What is this scam?
PayPal scams fall into two broad categories: phishing emails that pretend to be from PayPal, and abuse of real PayPal features (invoices, Friends & Family, chargebacks) to defraud genuine users. The trickiest scams use real PayPal infrastructure — a fake invoice or money request really does come from service@paypal.com — which makes them harder to dismiss. The defence is understanding the patterns, not just checking the sender.
Common warning signs
- Unexpected invoice from a stranger or unfamiliar business
- Email claims you've been charged and gives a 'support' phone number
- Buyer insists on Friends & Family for a goods purchase
- Buyer 'overpays' and asks you to refund the difference
- Email about a pending payment that needs you to 'ship first'
- Login alert from an unfamiliar device or country
- Sender domain isn't paypal.com (e.g. paypal-billing.co, paypal-secure.net)
Realistic scam examples
Fake invoice scam
From: service@paypal.com Invoice #INV-48291 Amount: £429.00 — Bitcoin Purchase If you did not authorise this transaction, call us immediately at +44 203 488 1177.
Friends & Family buyer scam
Hi! Can you send the invoice as PayPal Friends & Family to skip the fees? I'll pay an extra £15 to cover it. I do this with all my sellers, no issues 👍
Overpayment refund scam
Just paid £350 instead of £250 by mistake — sorry! Can you send the £100 back to my PayPal as Friends & Family? My bank shows it's gone through on my end.
Fake 'on hold' payment email
From: service@paypal-payments-secure.com The buyer's payment of £180 is on hold and will release as soon as you upload tracking and reply with your bank details for verification.
How to stay safe
- Never call phone numbers from PayPal emails. Open paypal.com directly and check Activity.
- Never accept Friends & Family for goods — you lose all buyer/seller protection and can be reversed via chargeback.
- If 'PayPal' says funds are 'on hold' until you ship, it's a scam. Real PayPal payments either land or don't.
- Reject any buyer who 'overpays' and asks for a refund. The original payment will reverse, leaving you out of pocket.
- Forward phishing emails to phishing@paypal.com, then delete them.
- Enable two-factor authentication on your PayPal account.
Not sure if a message is a scam?
Paste it into our free AI scam checker for an instant analysis.
Frequently asked questions
Are PayPal invoices from strangers a scam?
Yes. Anyone can send a PayPal invoice to any email address. If you didn't request one, ignore it — do not call the number in the message. The 'support' line goes straight to a scammer.
Why is Friends & Family dangerous for sellers?
Friends & Family is for personal transfers only. As a seller, you have no protection if the buyer reverses the payment via their bank. Always use Goods & Services, even with the fee.
Can a PayPal email really come from paypal.com and still be a scam?
Yes — fake invoices and money requests genuinely come from service@paypal.com because the scammer used real PayPal to send them. Always check the invoice details and your account directly.
What is a PayPal chargeback scam?
A buyer pays for an item, receives it, then files a chargeback claiming the transaction was unauthorised. PayPal often sides with the buyer, leaving the seller without item or money. Document everything and ship only to verified addresses.