
The Better Business Bureau (BBB) offers PayPal scam protection and dispute resolution to help users avoid financial losses. The BBB is a non-profit organization that evaluates and accredits businesses.
If you're a PayPal user, you can file a complaint with the BBB if you're unhappy with a transaction. The BBB will review the case and help mediate a resolution.
PayPal Scams and Disputes
PayPal scams and disputes can be a real hassle, but knowing the facts can help you navigate them more smoothly.
The Better Business Bureau (BBB) warns that scammers often use fake PayPal emails and messages to trick people into revealing sensitive information.
You should be cautious when receiving emails or messages from PayPal, as scammers can mimic the real thing.
According to the BBB, some common signs of a scam include misspelled words, poor grammar, and urgent requests for information.
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Warning: PayPal Scam
The Better Business Bureau is warning PayPal users about a phishing scam that can allow con artists to invade accounts with malware.

Phishing scams are getting more sophisticated every day and look like legitimate emails. They're after your banking and financial information and won't mind destroying your computer to get it.
The scam involves emailed fake payment confirmations containing links that, when clicked on, allow the malware in. This can open you up to the risk of identity theft.
If you receive an email claiming to be from PayPal, don't click on any links in the message. Instead, call PayPal or check their website to confirm the information.
Scammers try to cast a wide net by including little or no specific information in their fake emails. Always be wary of messages that don't contain your name, last digits of your account number, or other personalized information.
Allowing a scammer to access your computer can install malware that records passwords or hunts for personal information. Be cautious of generic emails and look out for spelling and grammar mistakes when dealing with suspicious-looking emails.
If you suspect you've received a fake email confirmation from PayPal, forward the email to [email protected] and report the scam to BBB Scam Tracker.
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PayPal Dispute
PayPal can hold your money for up to 180 days, which can be frustrating and confusing. This is a common practice among payment processors, but it's essential to understand the reasoning behind it.
You may receive multiple emails from PayPal asking you to resolve your account limitations, but getting a consistent reply can be challenging. This is exactly what happened to one user who had to deal with PayPal's unresponsive customer service for three years.
PayPal's permanent account limitation can have severe consequences, including the loss of access to your funds. This is what happened to a user whose account was permanently limited due to a lack of information, despite their efforts to provide the necessary details.
It's not uncommon for users to feel like they're dealing with uncooperative or even "dumb" customer service representatives. A user's experience with PayPal's customer service was so frustrating that they joked about the representatives being kidnapped and living in a "twilight world of dumbness and low-watt intelligence."
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BBB Alerts and Ratings
The Better Business Bureau (BBB) plays a crucial role in helping you make informed decisions when using PayPal. The BBB rates businesses based on their complaint history, customer service, and other factors.
PayPal's rating with the BBB is A+, indicating a high level of trustworthiness. This is reflected in the low number of complaints filed against PayPal, with only 0.02% of transactions resulting in a complaint.
You can check the BBB ratings of any business, including PayPal, to get a sense of their reliability and customer service.
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BBB Scam Alert: Texas Residents Stolen From
BBB is warning those with PayPal accounts to keep an eye out for a phishing scam that can allow con artists to invade accounts with malware.
Phishing scams look like legitimate emails and are getting more sophisticated every day.
By clicking on a link in an emailed fake payment confirmation, you are allowing the scam artist complete access to your computer and all the files and information stored on it.
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Allowing a scammer to access your computer can open you up to the risk of identity theft.
Scam artists can install malware that records passwords or hunts for personal information, such as bank account numbers, on your computer.
To protect yourself, call before you click and confirm it by calling the company or checking the company website.
Look for misspellings, as scammers often make mistakes in spelling and grammar.
Check the copyright at the bottom of the email, as a fake email will likely have a different copyright than a legitimate one.
Be cautious of generic emails that don't contain your name, last digits of your account number, or other personalized information.
If you suspect you've received a fake email confirmation from PayPal, forward the email to [email protected] and report the scam to BBB Scam Tracker.
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PayPal Customer Service Rating
PayPal's customer service record was labeled "unsatisfactory" by the Better Business Bureau due to receiving 30 to 40 complaints every month.

Most complaints claim PayPal is too slow to respond to questions and too quick to freeze accounts if it believes fraud has taken place.
PayPal has agreed to improve its lines of communication with the BBB and conduct high-level talks to address these issues.
The two companies met after the BBB labeled PayPal's customer service record "unsatisfactory."
PayPal has increased the number of customer representatives to 500 at its Omaha, Neb.-based service center to speed up its response time.
PayPal's policy on freezing accounts when it suspects illegal activity has been a target of complaints.
Customers have complained that PayPal often doesn't inform people that their accounts have been frozen or explain why they have been frozen.
Frequently Asked Questions
How do I complain about PayPal refund?
To initiate a refund complaint, go to the PayPal Resolution Center and select Open Cases to start the refund process. From there, you can issue a refund and add a note to explain the issue.
Sources
- https://www.turnerpublishing.net/news/2017/12/04/bbb-warning-maine-computer-users-of-paypal-fishing-scam/
- https://www.cantonrep.com/story/lifestyle/2023/04/09/straight-talk-small-businesses-spot-invoice-scam-using-geek-squad-paypal/70085519007/
- https://www.paypal-community.com/t5/Disputes-and-Limitations/I-have-started-a-case-AGAINST-Paypal-with-the-Better-Business/m-p/2646711
- https://www.oaoa.com/local-news/bbb-scam-alert-paypal-impostors-steal-thousands-from-texas-residents/
- https://www.cnet.com/tech/tech-industry/paypal-bbb-come-to-terms-on-customer-service-rating/
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