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The PayPal Scam

Date Added: Sept. 30, 2003
Last Updated: July 3, 2005

If it looks like a scam and feels like a scam, it's probably a scam.

SUBJECT: Please update informarion on your PayPal account

Dear PayPal user!

At 09.27.2003 our company has lost a number of accounts in the system during the database maintenance. If you have an active account, please click on the link below to update your credit card information. If you have problems with your account, please let us know at email support@paypal.com

https://www.paypal.com/us/cgi-bin/webscr?cmd=_UpdateInformation

While the above note is dated September 2003, much older versions have popped up. This is now a very common scam, called "phishing" that uses a type of "social engineering" to dupe unsuspecting netizens into giving crooks valuable information about themselves.

The poor spelling alone should be a red flag that this notice did not come from online payment processor PayPal. While the link you see in the message appears legitimate, the message utilizes HTML coding to mask the actual address you are sent to by the link. You are instead taken to a PayPal look-alike site on another server altogether. Those who respond to this message and provide the info requested will soon find themselves quite a few dollars poorer.

Newer versions are much more sophisticated, employing better grammar and graphics to much more closely imitate a legitimate notice from PayPal - so much so that PayPal cautions its members to closely examine any e-mail that appears to come from them, particularly for several easily identifiable signs that it is a scam:

"Please use the following tips to stay safe with PayPal:

Safe Log In: To log in to your PayPal account or access the PayPal website, open a new web browser (e.g., Internet Explorer or Netscape) and type in the following: https://www.paypal.com
Greeting: Emails from PayPal will address you by your first and last name or the business name associated with your PayPal account. Fraudulent emails often include the salutation "Dear PayPal User" or "Dear PayPal Member".
Email Attachments: PayPal emails will never ask you to download an attachment or a software program. Attachments contained in fraudulent emails often contain viruses that may harm your computer or compromise your PayPal account.
Request for Personal Information: If we require information from you, we will notify you in an email and request that you enter the information only after you have safely and securely logged in to your PayPal account."

The commission of fraud in their name has become so prevalent that PayPal has established a special security center page to help its members guard against theft. They ask that, if you receive an e-mail supposedly from them that you suspect might be a scam, you forward it to spoof@paypal.com and advise you to delete it immediately.

Remember, no reputable company will request personal or financial information about you via e-mail. Any message that does so should be regarded as a scam and dismissed. If you've responded to this message, or any like it, contact local authorities immediately to find out what steps you should take to report it and minimize loss.

References: Snopes.com, PayPal.com

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