Paypal is a safe online payment option but still everything is possible to manipulate in our computer world. A false paypal account can be opened within 15 minutes. So do not base your thrust on the fact a seller is using paypal. A direct method will of course not be discussed here as this is a fraud prevention not fraud creation website. But I will give some basic information so you know what is possible and how you can protect yourself. A paypal account without a real name and other proper personal information will be opened by two kinds of people: people who can’t use paypal because of limitations that are present in specific countries, but these will most likely open an US banking account and get a paypal account the legit way — and the other sort are those that we are after; scammers.
If you live in a first world country you will have full access to paypal unless, for some reason, your account got limited or restricted. For many other countries paypal either is not supported or access restricted to only sending money, receiving is impossible. With such a high demand for paypal, businesses and individuals, almost must have this payment option in order to exist in the online world. Nevertheless it is a benefit to have paypal as some will pay only with it. So these people, if skilled enough, sometimes use fake accounts or open accounts in other countries where they have a official document or friends.
But the other majority is using this to steal from people and money laundring. Paypal system needs a few things from you to be able to register with them:
a) Personal information
b) eMail
c) Your IP and registering country must match
d) Identity Confirmation
e) Telephone Number
f) Bank Account
Scammer can have any name, any address, any country he desires for he knows how to fool the paypal system. It does not matter what your real name is you can type in anything that comes into your head. And that is because he knows how to confirm a false identity. For those of you who already have a paypal account know how the identity procedure looks like. You have to add a bank account and your credit card then you wait for the expuse number which appears on your monthly credit card statement and enter it into paypal. How to solve this? A bank account can be opened online easily. Some banks require only a scan of your ID to open an account with them. A little photoshop magic and you are done. Next step is the credit card, how do you get a credit card that will verify a false identity? Easy and cheap! It won’t cost you more than 15$! Many big companies such as amazon sell gift cards. You know how hard it is to buy a good present for your wife, kids or friends. Gift cards were the perfect solution, you give your friend a gift card with the desired amount of cash and he buys himself exactly what he wants. These giftcards must be neutral, work on any name so you can give it to your loved one. Scammers took advantage of this and used cards like these or VCC’s (Virtual Credit Cards) to verify their false identities on paypal and many other online companies. Sometimes paypal calls their customers to verify them or let them know of some important changes/notices. so if you would have provided a false number and are unreachable they will most likely limit your account. A new number untraceable can be obtained easily, the best way the scammers use is Skype! Walla, this is how easy it is for scammers to open up a false verified paypal account!
January 8th, 2008 at 10:08 am
This is very scary, espcially about the 3rd mail dropshop, what is this i have never heard about that, also i just cant see how its possible to withdraw money from paypal through an ATM card, either way its very concerning and something to think about when buying from ebay. I will think twice before making a puchase.
October 2nd, 2008 at 12:37 pm
Paypal can send you an ATM linked to your paypal account which allows you to withdraw money in the same way that would from your own personal bank account.
October 15th, 2008 at 6:28 pm
the paypal-ATM scam, is it only applied in US? Do other country citizen needs to worry about it too?
October 15th, 2008 at 11:31 pm
It doesn’t matter what country you’re in really. And it’s not that what you should worry. You should only be careful to whom you send your money and that your account doesn’t get “hacked” and money stolen. For example, check the companies before you make a purchase, don’t open fake paypal emails…
November 9th, 2008 at 6:58 am
You state PAYPAL system needs a few things from an individual to be able to REGISTER with them ie c) YOUR IP AND REGISTERING COUNTRY MUST MATCH. If that is correct, how does the PAYPAL system sort out the individuals who try to open a PAYPAL account using a computer with an IP Address in one country and at the same time that individual giving an address and phone number and registering by selecting a different country from the PAYPAL ‘drop down’ country choice selection ??
ie. The computer is in EGYPT. IP ADDRESS
The individual cannot choose EGYPT as it is not on the PAYPAL ‘drop down’ country choice selection. ie PAYPAL is not available in EGYPT.
Therefore – The individual chooses the UK or US as it is on the PAYPAL ‘drop down’ country choice selection and also matches the address given to PAYPAL together with the relative phone number.
IS IT POSSIBLE THAT PAYPAL DO NOT CHECK AS STATED ??
November 9th, 2008 at 10:12 am
It does not mean that you can not open an account in a different country, even if the IPs don’t match. You can.
However it does raise a flag and if enough flags are raised your account may get frozen.
And if you can provide all the information paypal asks, you can open an account just about anywhere. You may be required to provide them with things like your credit card, bank account, personal ID or driving license, utility bills…
November 10th, 2008 at 5:27 am
Thank you admin
May I ask. On opening a PAYPAL account from anywhere in the world would PAYPAL be able to identify the EXACT ADDRESS where the computer is being used from at the time by just knowing the IP ADDRESS.
Or would the IP ADDRESS just disclose the AREA and COUNTRY.
Also would a DIAL UP SERVER and/or the TELEPHONE COMPANY being used be able to pin point the EXACT ADDRESS from where a computer is being used from by knowing the IP ADDRESS used at any time.
November 16th, 2008 at 1:36 am
Yes, you may trace an IP. We do it for all customers visiting our website. We use a software called etracker that tracks each visitor then we use another software to track IP address thus keeping a check on what buyers watch in different countries. In all European countries and US,Canada you can pin point IP location of user till street and house number if you use paid IP tracking service.
We can run but not hide!!!!
February 16th, 2009 at 7:37 pm
cant trace the wireless
March 6th, 2009 at 5:40 pm
We have been victims of this scam. In december someone in “California” took 1900 dollars out of our checking account..with a false name registered to our routing and checking numbers..and then to our dismay after changing accounts and everything it happened AGAIN TODAY. 1850 dollars taken out of our savings this time. I have never used paypal,have not opened up a “scam” e-mail and have no clue how they were able to get passed our anti-virus protection and every other firewall we have..and through the secure Wells Fargo website..but it was done..and it is really aggravating! Takes 10 days to get a refund,which is just a huge inconvienence. But we dont have to worry about it again because once our acct has been scammed it cant be done again..both accounts have..so it should be smooth sailing after we get this one done with! Watch out out there,because no matter how secure you think you are..you are actually just lucky that they haven’t chosen you YET!!!!!!!!
April 17th, 2009 at 11:42 am
I didn’t see this answered anywhere above and I’d appreciate any help you have to offer. I was wondering if it’s possible to be a victim of a scam if you are the seller. Can the buyer send a ‘fake’ payment to paypal? If the link was set up by the seller in their actual paypal and then sent the link to the buyer, who then agreed to pay ‘X AMT’ and the seller agrees to send the item as soon as payment is confirmed. Does the money directly get taken from them and put into the seller’s bank acct or what happens there? Any help?
April 17th, 2009 at 10:28 pm
Yes, they can. One of the ways is through a fake e-check (that’s why you’re advised not to send anything in advance before it clears). You could also receive “fraudulent funds”. For example through phishing or other similar activities a thief can obtain a username/password of a particular paypal account. He will then send out the money to one or more recipients (his accounts) and may pay you from one of these accounts. Such payments could be reverted, because they’re stolen.
June 17th, 2009 at 5:15 am
In response to Hannah’s query “Can the buyer send a ‘fake’ payment to paypal?”
Buyers can do chargebacks which is just as bad. Paypal just isn’t safe anymore
July 12th, 2009 at 6:28 am
I have a question,if i open a fake account which also contain money,can I send money to other account.The way to get the money is legal.
August 8th, 2009 at 5:07 am
pls how can i open a personal paypal account from Nigeria. I ve been trying to open this account since but Nigeria is not in paypal country dropbar. thanks
September 11th, 2009 at 12:16 am
What is “Walla” My gosh. ITS Voilà!!!!!!!!
September 14th, 2009 at 6:03 am
I was recently scammed by a fake paypal. Was so pissed about it and the real paypal didn’t really care. LOL, i have tried to contact different agencies but they are not replying to my email anyway. The fake paypal is apparantly comes from nigeria. Their modus operandi is they are going to transact with you, and then they will say that they have over debitted the buyer in which you need to send the money back via western union. (well i never did send the money cause i dont want to lose more than i had alreay, i like spent for the shipping :/ which was hell alot.
Hope my experience give ideas to people
September 26th, 2009 at 8:42 am
Every time I think I will just get a pp account i do a little research and only horror story comes up. I will just stay away of pp.
October 5th, 2009 at 9:05 pm
I recently used paypal and should have used my credit card because my card will help me fight fraud, paypal is just a service for fake companies to hide. I bought a $150 dress and did not receive it and paypal could care less and would not offer me anymore information to contact the company. I tried to open a case and it was closed by the company within minutes.
Dont use paypal or buy from out of the country.
November 6th, 2009 at 5:08 am
Bashy didn’t you read through the forum? Are you a dummy? Nigerians are sharp guys I don’t know where you were raised. Òlòdó!!!!!!!