Watch Out for PayPal Fraud

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bob p
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Watch Out for PayPal Fraud

Post by bob p » Mon Aug 27, 2007 4:48 pm

I just had a hair-raising experience with PayPal, where it looks like a savvy buyer tried to defraud me out of $200:

I checked my emails today, and I found that a buyer had placed a web order for some electronics. The transaction was dated yesterday, 8/26 for about $200.

Another email from PayPal stated that the $200 transfer to my bank account had been reversed, because the buyer filed a complaint for non-receipt of goods today, 8/27. That's right, they filed a complaint for non-receipt of goods less than 24 hours after placing their order. PayPal responded by reversing the electronic funds transfer, taking the $200 out of my bank account without my consent.

The buyer opened a dispute on PayPal for non-receipt of goods, and made this claim:
I am not disputing this transaction, I only need to insure that the seller gets the correct mailing address. I need the product shipped to719 SW Riverbend CircleStuart, FL 34997The address that PAYPAL assigned to this transaction was an old address where I no longer reside.Thanks all! Sorry for the problem ...Kevin
As you may know, if you accept money via PayPal, to be protected by their Seller Protection policy, you MUST ship to the buyer's verified shipping address. Otherwise the seller can file a complaint for non-receipt of goods, and if you shipped to the wrong address you lose both the PayPal payment AND your merchandise. My order form specifically advised the customer that I would not, under any circumstances, ship to an address other than the official address of record. In this case, the address of record was in Oklahoma, but the buyer tried to force me to divert the shipment to Florida.

In this case, the buyer did 2 things that immediately made me think that he may be trying to commit an act of credit card fraud:

1. He asked me to ship to an address other than the legitimate, confirmed address of record with PayPal, and

2. He filed a dispute for non-receipt of goods the day after he placed his order. There's just no way that the goods could have been delivered in so short a timespan, so the buyer was intentionally abusing the PayPal dispute resolution system. Thank God I didn't ship the merchandise to him yesterday. If I had shipped yesterday, I could have lost both the merchandise and the payment.

The moral of the story: NEVER, I mean NEVER ship anything to a PayPal customer at any address other than the confirmed shipping address, and NEVER, I mean NEVER ship merchandise until the PayPal money has been transferred to a bank account that you don't use for anything other than PayPal, and you've withdrawn the funds so that you have cash-in-hand and a zero account balance. OTherwise you could be scammed like this person tried to scam me.

The mysterious customer named "Kevin" attempted to bill his purchase to the account of Kathleen Smith in Oklahoma, and to have it shipped to him in Florida. The email used on the transaction was

In this case, I was lucky in that I had not shipped the merchandise before the customer started the complaint process. I refunded the seller's payment and told them that I would not be shipping any merchandise to them. I told them that its their job, not mine, to update their address information with PayPal. I also told them not to bother re-ordering after they straightened out their address problem. After they filed a dispute against me for no good reason, I do not want them as a customer.
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Post by stereo_dog » Tue Aug 28, 2007 6:35 am

Thanks for this post. It's becoming increasingly harder for the casual buyer/seller to do business on E-Bay thanks to these people. Any insight that anyone has regarding buying and selling is appreciated. Being informed is our only way to avoid costly scams and "mistakes".
Thanks again.
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Post by londonbarn » Tue Aug 28, 2007 12:16 pm

I agree stereodog...... and then what also seems to happen is........ the fraudulent wanker, then gives you some BAD feedback on top of that! It is like you cant win "coming or going"..........

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Post by F1nut » Sun Sep 16, 2007 2:25 am

Do da do da do.......
Political Correctness...defined

A doctrine fostered by a delusional, illogical minority and rabidly promoted by an unscrupulous mainstream media, which holds forth the proposition that it is entirely possible to pick up a turd by the clean end.

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Post by treitz3 » Fri Oct 26, 2007 8:36 pm

londonbarn wrote: It is like you cant win "coming or going"..........
So true, and he should know.
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