"To friends and family": Consumer advice center warns of fraud on PayPal

Fraudsters are trying to get hold of users' money, especially online, with ever new methods. Now there is a warning of a scam at PayPal.

Kassel – PayPal is used by millions of people in Germany to pay bills and purchases. Also to send an amount to friends or family members without further ado. But it is precisely this function that fraudsters are now taking advantage of, as the consumer advice center warns. And in a particularly insidious way.

"To friends and family" – consumer advice center warns against fake shops

With an ever-increasing scam, fraudsters are trying to get hold of online users' money. As the consumer advice center warns, the number of fake shops created by criminal operators is increasing. Instead of payment methods by instant bank transfer or invoice, only payment by PayPal is offered there. Not about the "goods and services" option, where consumers enjoy buyer protection over PayPal.

The consumer advice center warns of fraud with fake shops on PayPal. © Rüdiger Wölk/Imago (symbolic image)

The payment in the fake shops is to be processed via PayPal "friends and family". Buyer protection: None. Amounts paid can then no longer be reclaimed. Not even if no goods are delivered at all. How does the scam work? "In fake shops, payment is offered via a PayPal link. The forwarding to the payment service provider is usually configured in such a way that the purchase amount and the option 'Send money to a friend' are preset." If buyers do not explicitly pay attention to which option is set, the money is gone.

Again and again new scams about PayPal: Consumer advocates advise to take a close look

Buyer protection can take effect if "items are not received or they clearly do not correspond to the description," writes PayPal. In the near future, online shoppers should increasingly make sure that a payment is made via PayPal including buyer protection. In other words, the payment method "For goods and services" is set. If the payment is made via "Friends and Family", this can be recognized by a gift symbol. PayPal is constantly trying to improve and make it even easier to use. Nevertheless, there are always reports of new scams on PayPal.

Buyers should also sit up and take notice if money is transferred to them by unknown persons. A little later, there is often a request as to whether money could be returned, as it was a supposed oversight. The money originally received is then retrieved by creating a PayPal case, and the money sent by the company itself is then already gone. Time and again, consumers who have become victims of fraud report to the consumer advice centre.

Payment method disguised as a gift of money: Victim of a PayPal fraud shares his experience on the net

"Unfortunately, I fell for it, but I was sure when the payment method was displayed PayPal. Unfortunately, you are redirected quite brazenly to PayPal and can pay. It's just stupid that it's disguised as a gift of money for friends and you don't notice it right away. I only noticed this when I didn't receive an order confirmation from the shop and couldn't log in to the shop anymore. I called PayPal and only then did I find out that it was a gift of money," says one PayPal user, describing his negative experience.