PayPal fraud is on the rise and this is what you need to know to avoid being caught out.


I received an e-mail with a PayPal receipt which I deleted as I thought it was spam. It transpires that PayPal never send spam e-mails and I was able to recall it to complete the picture.

I checked my bank account that night online and noticed a transaction for £1.95 with a narrative stating, “Direct Debit First Payment”. This was news to me, so I checked my Direct Debits and it transpired that someone in Russia had hacked my PayPal account, set up a Direct Debit and tested my account with a small transaction hoping that I wouldn’t notice prior to hitting my account with a big transaction that would take a lot of time to resolve.

I contacted my Bank and after being passed around the houses in India, it transpired that they could not help me and I was told that I need to raise it with PayPal.

Incredible, isn’t it? Someone in Russia enacts a fraud on your account, sets up a Direct Debit and there is nothing that your Bank can do to help you. My contact in the Fraud Department in India even suggested that I do not cancel the Direct Debit!

So, I had to reset my PayPal account that I rarely use and raise a query with PayPal who in turn e-mailed the seller in Russia asking them to respond within 7 days.

A friend of mine was caught out by a PayPal fraud and dispute which involved the Police and I was also caught out by another familiar PayPal phishing e-mail fraud.


Check your bank account online once a week to ensure that you are aware of any fraudulent activity. You can then act on it and nip any issues in the bud before they evolve in to something that will not only take a lot of time to resolve but will leave you out of pocket in the interim.

I have also written about Facebook fraud, Amazon fraud, SIM phone card scams and other types of fraud in this blog.

Have you been caught out by PayPal fraud?

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