TULSA, Okla. — If you use PayPal to shop online or send money, you need to be extra cautious.
Data from the Federal Trade Commission reveals PayPal is among the top three companies most frequently impersonated by scammers.
Consumer fraud losses have skyrocketed from $8.8 billion in 2022 to $12.5 billion in 2024, according to FTC data. PayPal users are particularly vulnerable — the platform was named in 28% of payment app fraud reports in 2023, the highest among all payment services, according to FTC data.
Here are the top five PayPal scams targeting consumers and how to protect yourself:
1. The "problem with your account" scam
Scammers send phony emails claiming there's an urgent problem with your PayPal account. The email includes a link they claim will quickly fix the issue.
Don't click — it takes you to a fake website designed to steal your login information.
2. The "you have money waiting" scam
In this scheme, scammers dangle promises of cash rebates or rewards when you click a link. If you do, that site harvests your credentials and gives fraudsters access to drain your account.
3. The shipping address switcheroo
If you sell items online, buyers may ask you to use their preferred shipping method, which allows them to easily reroute packages. The buyer then claims they never received the package, so they won't pay, leaving you out of both the merchandise and the money.
4. The callback phishing trap
You receive an email about "suspicious activity" involving large transactions, urging you to quickly call a number to fix it. That call takes you to a phony call center fishing for your personal information.
5. Fake charity scams
During disasters like recent wildfires and especially after tornado damage or other major disasters, scammers create bogus relief funds hoping to exploit your generosity.
How to protect yourself
- Never click email or text links. Instead, log in to PayPal directly through your browser.
- Only ship to addresses shown on PayPal's transaction details page.
- If someone overpays and asks you for a refund through a different platform, that's a big red flag for fraud.
- Only deal with verified buyers and sellers, as verifying a PayPal account requires sharing personal information with the platform.
- Never send money outside PayPal if you conducted the original transaction on the website.
- Only contact PayPal using the number listed on its official website, and remember that official PayPal communications will always address you by name.
The percentage of fraud victims who reported actual monetary losses increased from 27% in 2023 to 38% in 2024, according to FTC data released in March 2025.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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