PayPal - Source for Fraudsters?

I thought I would share some recent problems I have had since having my PayPal accounts "verified".

Prior to joining this forum I had used PayPal just once several years ago and had never had any problems. After getting more active on CPF, I linked one of my checking accounts to my existing PayPal account so I would be "Verified". Shortly after, I got a phishing e-mail for that bank account but figured it was just random chance. I reported it to my bank, but didn't think much else about it.

Then, when I started selling items, I opened a PayPal Premiere account so I could take CC funded payments. Once again, I got a phishing e-mail shortly after for the associated credit card since I didn't link it to my bank account. At that point, I started getting suspicious of Paypal since I had never had any phiching e-mails before. Yet here I get two of them in a short period, both just after linking them to my PayPal accounts. Hmmmmmm?

Today I got another nasty suprise. I got my first CC statement since opening the Premiere PP account and it was flooded with fraudulent charges. And I had not used this card for any actual charges sice before I opened the second PP account. When I called to report the fraudulent charges, I found that even more had been charged since the statement date. There were so many that overlimit charges had been triggered. The only charge they refused was the $4000 one, since the card only has a $2000 limit. Fortunately, the flood of charges was so bad that the CC company didn't bat an eye when I reported it. They are removing the all the charges and overlimit fees, closing the account, and sending a new card. Needless to say, I also closed the PayPal Premiere account. It may be a pain to not be able to accept CC payments in the future, but it sure isn't worth this hassle.

Has anybody else had similar fraud problems after opening/upgrading their PayPal accounts? I know PayPal is pretty secure generally, but I can't help thinking that the Fraudsters got my bank account and credit card information from me setting up the PayPal accounts. The timing and the damaged accounts are just too close to be coincidental. Although, from my understanding of how PayPal operates, nobody outside of PayPal should have been able to see the associated accounts. Anybody got a clue how this could have occurred so I can avoid it better in the future?

Oh ... :sick2:
Malware on your computer?
bernie

Highly doubtful, I run a full security suite which is kept updated, periodically run several spyware sweepers, have both hardware and software firewalls, etc. And the only problems I have had have been with the accounts linked to my PayPal acccounts and have occurred immediately after linking them to PayPal.

That's sad to hear. I don't sell on eBay so I have no experience taking CC payments.

I'm simply verified by giving PayPal a bank account number. I get the phishing thing occasionally, but not for my bank, just for my PayPal account. Somehow these criminals know my PayPal email address. It's only used by PayPal and nobody else should know what it is. They also seem to know when I purchase something with PayPal because I often get a phishing email soon afterwards.

I have a premiere account also, but have never had fraudulent charges. From what I recall, the verification occurred prior to adding the cc payment option. Verification is to allow transfer from the bank and back right? I do get some phishing emails, but toss em. I'll keep my fingers crossed cuz these shysters are good.
Sam

Verification is to verify our identity. Payment via bank account is optional. The federal slime require us to give our social security number to open a bank account. Even the jack-booted thugs in Washington have their uses.

I'm guessing that the phishing emails are sent to a very large number of people without knowing whether the recipients have PayPal accounts. If 40% of the recipients have PayPal accounts, and 8% of those people respond, the slime have had a good day.

What got me was the timing. I had never had any phishing attempts before. But within a day of adding the bank account to the first paypal account, I get a phish for that account. At first I just thought it was coincidence. But when I opened a second paypal account and linked it to a credit card, I once again got phished within 24 hours for that same credit card. These are the only times I have gotten the phishing e-mails, right after linking the account/CC to a Paypal account. It could just be coincidence, but the timing and the fact that the phishing was specifically tailored to the 2 different funding sources for the Paypal accounts makes it very suspicious.

Since you have been a victim of fraud, it is probably worth your effort to check with the credit reporting agencies to see if there is anything else strange going on... And maybe put a fraud alert on your file (although, as I understand it, the Fed Gov has reduced the effectiveness of the fraud notice and the length--if any--it can stay in your files).

Also, did you try a polite phone call to the bank and the credit card company security office/specialist and see if you could get them to do more/understand where the problem might be? It sounds like there is an information leak in their data pipeline somewhere (and with so many back offices outside of the US--the data protection laws become even iffier).



If I understand you correctly, they linked your email (paypal) address and bank name in one case, and your email and credit card company in another? How close were they (i.e., something big like Visa or small/regional like First National Bank of Daly City).

I don't know what else you can do--other than notifying your state's Attorney General and local police--The problem sounds scary and I would be tempted to drop that bank and go somewhere else. Banks (and other companies) tend not to want to let anyone know about their problems. There have been recent problems with credit/debit card processing centers where hundreds of thousands of customer's have been compromised—and at least one company, is now out of business.

-Bill

I have had nothing but bad experiences with PayPal. Including my last phone call to them in witch I was called a terrorist but a customer service representative. Believe me...if there was another way besides PayPal, I would use it.

BB said:

.....If I understand you correctly, they linked your email (paypal) address and bank name in one case, and your email and credit card company in another? How close were they (i.e., something big like Visa or small/regional like First National Bank of Daly City)......

Click to expand...

They were very close. The first one was fake Bank of America letterhead and specifically referenced my bank account. The second one was virtually identical in the formatting which is what caught my attention. The only real difference is that it was fake Chase letterhead and mentioned my credit card account instead of bank account. I forwarded both phishing e-mails to the banks security departments but never got any kind of response. So far, there has been no real effect on my credit because I keep meticulous financial records so I spot these things almost instantly. And I have not had any problems with the my banks because I can document all my legitimate charges. In the last 5 years, I have had maybe 3 spurious $10-$20 charges to my credit cards that were immediately caught and had no problems getting them reversed. But after I opened that PayPal Premiere account, the linked credit card was flooded with thousands of dollars in fraudulent charges even though the card had not been used for any other charges for a significant period prior to that.