Selling your used stuff online has become commonplace. So have scams taking advantage of the good names of reputable online companies. At the FTC, we’ve heard from people stung by scammers spoofing PayPal. The scam generally goes like this: You post a high-value item, like a used car, for sale online. In no time at all, you get an email from a buyer willing to pay full price — or more! But he sets conditions; he is only willing to pay by PayPal or insists the sale must happen right away. What’s really going on? A ruse to steal your personal information, money or merchandise.
Here are some suspicious situations to look for and steps to safe selling online:
Scenario One: The buyer claims he can only pay via PayPal. Don’t have a PayPal account? No problem, he says. He’ll send you an email with a link so you can set one up.
What should you do? Don’t take the bait. The link will send you to a website masquerading as PayPal. Any information you enter will be collected by the bogus buyer, and may be used to commit fraud. If you need to set up an account, go directly to PayPal.com.
Scenario Two: “Check your email!” The buyer claims he has sent payment to your PayPal account with additional funds so you can ship the merchandise ASAP, but oops, he sent too much money. He asks you to return the extra money via a money wiring service. It’s all a lie, including the extra money the buyer says he included.
What should you do? Log into your PayPal account. Make sure you’ve been paid before you ship. Never follow links in emails from people you don’t know. The safest approach is to open a browser window, navigate to PayPal.com, and log in yourself. Also, if the buyer claims to have sent extra money, and asks for some back, that’s a big red flag.
Scenario Three: The buyer sends you real money through a real PayPal account, and you ship him the car. Problem is, the PayPal account belongs to someone else! You might need to return the money even though the scammer has your wheels.
What now? Contact PayPal and ask them to open an investigation. The company offers seller protections so you aren’t liable for unauthorized transactions. Also file a complaint with the FTC and your local police department.
The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.
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- We won’t post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. To file a detailed report about a scam, go to ReportFraud.ftc.gov.
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