Paypal warning: Criminals use send money to friends and family feature in fake shops

Paypal warning: Criminals use send money to friends and family feature in fake shops

According to a report by www.tagesspiegel.de, the Hamburg police and the Hamburg consumer advice center warn of a new scam from fake shops. Criminal operators use the Paypal payment function “send money to friends and family” to circumvent buyer protection and not have to pay back the amounts of money paid.

This new scam is having a serious impact on consumers and the market. When customers pay via this compromised Paypal link, they will not be able to claim the money back if there are any problems as the payment is marked as “Send money to friends and family”. Consumers are therefore exposed to significant financial risk, especially if they buy from fraudulent fake shops. This can lead to a loss of trust and a lower willingness to buy online, which can negatively impact the e-commerce market.

The consumer advice center's recommendation to carefully check Paypal's designated payment function is therefore particularly important. It is crucial that consumers are aware of which payment methods circumvent PayPal's buyer protection feature and therefore pose an increased risk of fraud. Raising consumer awareness of this fraud and strengthening security mechanisms for online payments are also crucial to counteract the abuse of payment service providers.