Reported Post by lured yah

Lured Yah · Nov 26, 2011

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Should be moved to archive.. old & outdated
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Post: The Most Famous PayPal Scam & Prevention
Forum: Spam Forum
Assigned Moderators: cosrob97, JohnK, Alteranz

Posted by: Dingo212
Original Content:

MASSIVE EDITING GOING ON

We all know that Paypal is easiest method when coming to buying or selling mills. Paypal has something deadly, called Charge Back feature, where the person who paid you can reverse the payment.

To make life simpler, this guide is divided in to 3 parts.

Part 1: How Paypal Works
- Commission Fees
- Account Types & Banks

Part 2: Possible ways of getting scammed in Paypal
- Credit Card Fraud
- Payment Reversal

Part 3: Scam Prevention Steps
- Paypal Account Creation
- Claim & Cancel
- Safe Banking

Part 1 ::.. How Paypal Works

- Fees

Paypal charges fees for all Personal transactions funded by Credit Cards. See Picture #1 below

The fees can be paid by the sender or receiver.

When sending money, the fees would appear on the sender's payment page with an option to pay it or pass it to the buyer.

- Account Types & Banks

When adding a credit card/bank, your account becomes Eligible for fraud protection and you get increased 'Sending/Receiving limit'. These features are implemented by Paypal

If you add a bank and give authorization to Paypal by confirming your bank, then Paypal can reverse any payments it made to your bank in the past

A Bank is considered confirmed/verified with Paypal if you add an account AND wait for Paypal to deposit two very small amounts to your bank and then enter those amounts on the Bank Confirmation page. The following is an exert from Paypal site

Unconfirmed: Deposits Sent
PayPal has made two small deposits to your bank account. Please check your bank statement or call your bank in 3-5 business days to determine how much was deposited. Once you know how much was deposited into your bank account, login to your PayPal account and click "Confirm Bank Account" to complete the confirmation process.
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A Paypal account can also be funded by adding yours/your parents' Credit Card

Part 2

::.. Possible ways of getting scammed in Paypal

We will go to the base of Paypal Scams. From this point on, we will look at transactions from a Scammer's point of view. There is two types of funding methods to Paypal.

- Credit Cards Scam (Dangerous)

If a Credit Card owner (or scammer's parents) calls their credit card company says he did not authorize the payment(hence its fraudulent), then the company will reverse the payment. This is 100% unstoppable

Furthermore, fraudulent CC (Credit Cards) can be added to accounts and be used to pay you. This is also used widely in pin selling. Payments will be reversed in these cases too

Paypal works with computer IPs. If a scammer send you $500 (for 500M gp) and does the trade via a proxy. He can then call Paypal/Credit Card company and report the transaction as 'unauthorized/hacked' to reverse their money!

- Payment Reversal

A payment can be reversed in 3 ways.

1. By the Credit Card company (see above)

1. By Sender which is also called Claiming

1. By Paypal (Reversal due to fraud)

A scammer can reverse payments if it is anything other than a gift. For low amount payments, always request it to be sent to you as 'Gift' with a 'Thank You' message to validate it.

Paypal can reverse your payment if it thinks the money you have is fraudulent due to sender Claiming or Credit Card mishap

A reversed payment can even retract the payments you made to others' Paypal. There are only very few claims to support this

A reversed payment can limit your account from sending money or put your account in negative balance

A reversed payment can lock your Bank account/Credit Card with current Paypal login and you won't be able to use them elsewhere/another Paypal account

Part 3 ::.. Scam Prevention Steps

Terms of Services (TOS)

One way to avoid scammers is having your own terms of services. These are list of rules that the buyer must agree before dealing with you.

I highly recommend the following condition as one of your TOS. Just copy and paste it as one of your TOS.

PHP:

[b]- During the trade, you may be expected to take a screenshot and host it to verify your account. Please be ready for this - I do not accept Credit Card funded payments in Paypal. Please read my TOS regarding Paypal payments below.[/b] I will not accept Credit Card funded payments in Paypal. If your Paypal account is directly funded by yours/your parents Credit Card then do not bother contacting me. If you send me money using Credit Card, I am not responsible for it. Its up to you to get it back [I will not send it back] However, if your Paypal is funded by a Bank, I will do trade with you. You are expected to, and must "Claim and Cancel" in order to trade with me. I reserve the right to refuse the sale to any buyer i am suspicious of, or cancel the sale at any time for my own safety. To know more about Claiming & Canceling process, read this Guide: [url]http://www.sythe.org/showthread.php?t=149307[/url]

If someone still send you a CC funded paymen say $200, never send your money back for it. They could still claim their own money back via Paypal ($200) + they also get your money. Leaving you at a loss of $200.

Paypal Account Creation

Your own Paypal accounts should not be used for Real World Trading (RWT) for any games as a reversal/limitation can put lock it from further use

You should never add your own Credit Card to your Paypal. Instead, buy a pre-loaded CC and add it. These can be purchased at CAA, 7Eleven, Gas Stations and now most major retail shops carry these as well

Create a new Paypal Account with fake ID and address for RWT. Do not add bank, read the guide below for how to do Safe Banking

Claiming & Canceling

Safe Banking

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MASSIVE EDITING GOING ONWe all know that Paypal is easiest method when coming to buying or selling mills. Paypal has something deadly, called Charge Back feature, where the person who paid you can reverse the payment.

- How is this done?

We will go to the base of this scam. There is two kinds of funding methods to Paypal.

1. Fund by Bank/Other Paypal accounts/any other method.
2. Fund by CreditCard (Dangerous)

Lets look little deeper about both messages

[Filing a Claim & Canceling> Is a method of safeguard your funds against scam and this is fail proof in some scenarios]

1 - If the person funded their Paypal with method #1, and then sends you cash AND then Claim & Cancel (this will be explained below) then the cash is irreversible; no matter what. So you are 100% safe!

2 - If the person funded his Paypal with a CC [Credit Card] then it can be reversed, regardless of him Filing a Claim and Canceling it.

Scam Explained

In Paypal, the claim and canceling method is effective. Even in CC payments, Paypal itself won't really let you claim money back once you do Claim & Cancel.

However, the person who sent you cash can call the Credit Card company and say he didn't authorize that specific payment & their card is stolen. Then, the Credit Card company will reverse the payment towards Paypal & then Paypal will reverse the payment from you.

Another way this is done is sending the cash via a different IP and then filing a report with Paypal saying they didn't authorize that payment & someone else was in control of their Paypal account. Both methods works for scammers; resulting in high charge back rates in Paypal.

This can happen regardless of you have money in your Paypal account or not. So if you did something like, transfered the money to another account or to your bank, then that will be reversed too (I have a method to escape from this too called - Safe Banking (trademark Dingo212, Copyright 2011 - Sythe, etc, etc). At the end of this chargebacks you will end up getting scammed/your Paypal account will have negative balance.

How to prevent Chargebacks?

There are four ways:

1. Having a Paypal account that won't accept Credit Card payments [Personal Type account]
2. Having a Disclaimer in your 'GP Selling' thread saying that you will NOT accept CC payments
3. Knowing how to do Claim & Cancel
4. Knowing how to do Safe Banking

Method #1

Only Premier/Business accounts can accept Credit Card payments in Paypal without a processing charge (by Paypal). So, if you keep your account as a Personal-Type account (unverified & without adding a Credit Card), you simply cannot accept CC payments and you can clearly say to your buyer, "Sorry bro, I don't accept CC payment" and not do the trade.

Even if they send a CC funded payment to your personal account, now you know it will be charged a transaction fee.

- How will you know about transaction fee?

When someone sends you cash, in the "Details" page (see pictures #1) of that transaction check out for this feature (see picture #2). If it says "Ineligible" as noted in the picture, that means your seller is not verified/not a premier account aka not funded by CC. This means you can do transaction with him BUT still have to do Claim & cancel and Safe Banking to make sure everything is 100% safe.

Method #2

In your mills thread, clearly say that you won't accept any Credit Card payments via Paypal and if the buyer still sends it, then it would be their responsibility to get it back.

I wrote one disclaimer to copy and paste in your thread:

I will not accept Credit Card funded payments in Paypal. If your Paypal account is directly funded by yours/your parents credit card then do not bother contacting me. If you send me money using Credit Card, I am not responsible for it and its up to you to get it back [I will not send it back] However, if your Paypal is funded by a Bank, I will do trade with you. You are expected to, and must "Claim and Cancel" in order to trade with me. I reserve the right to refuse to sell to any buyer i am suspicious of, or cancel the sale at any time during it for my own safety. To know more about claiming and canceling, read this thread: http://www.sythe.org/showthread.php?t=149307
Click to expand...

Please note: If someone still send you CC funded payment say $200, never send your money back for it. They could still claim their own money back ($200) + your money. Leaving you at a loss of $200.

Say, someone comes up to you & agrees to the above disclaimer. After that, he sends you cash but how would you know his cash is Credit Card funded or not?

How to find Credit Card funded Payments?

----------------------------------------
We all know that Paypal is easiest method when coming to buying or selling mills. However, it also got something deadly, called Charge Back feature, where the person who paid you can reverse the payment.

How is this done?

We will go to the base of this scam. There is two kinds of funding methods to Paypal.

1. Fund by Bank/Other Paypal accounts/any other method.
2. Fund by CreditCard

Now If the person funded his/her Paypal with method #1, and then sends you cash AND then Claim & Cancel, then the cash is irreversible; no matter what. So you are safe!

However, if the person funded his Paypal with a CC [Credit Card] then it can be reversed, regardless of him filing a claim and canceling it.

Scam Explained

In Paypal, the claim and canceling method is effective. Even in CC payments, Paypal itself won't really let you claim it back once you Claim and Cancel.

However, the person who sent you cash can call the CC company and say he didn't authorize that specific payment & their card is stolen. Then, the Credit Card company will reverse the payment towards Paypal & then Paypal will reverse the payment from you.

Another way this is done is sending the cash via a different IP and then filing a report with Paypal saying they didn't authorize that payment & someone else was in control of their Paypal account. Both methods works for scammers; resulting in high charge back rates in Paypal.

This can happen regardless of you have money in your Paypal account or not. So if you did something like, transfered the money to another account, then that will be reversed too. Hence you end up getting scammed/your account will have negative balance.

How to prevent this?

There is two ways:

1. Having a Paypal account that won't accept Credit Card payments.
2. Having a disclaimer in your 'selling gp' thread saying that you will NOT accept CC payments.

Method #1

Only Premier/Business accounts can accept Credit Card payments in Paypal. So if you keep your account as a basic one (unverified & without adding a Credit Card), you simply cannot accept CC payments and you can clearly say to your buyer, "Sorry bro, I don't accept CC payment" and not do the trade.

Even if they send a CC funded payment to your personal account, now you know it will be charged a transaction fee.

How else you will know other than transaction fee?

When someone sends you cash, in the "details" page of that transaction check out for this feature. If it says "ineligible" as noted in the picture, that means his/her account is not verified/not a premier account aka not funded by CC.

Method #2

In your mills thread, clearly say that you won't accept any Credit Card payments via Paypal and if the buyer still sends it, then it would be their responsibility to get it back.

I wrote one disclaimer to copy and paste in your thread:

I
Click to expand...

will not accept Credit Card funded payments in Paypal. If your Paypal account is directly funded by yours/your parents credit card then do not bother contacting me. If you do send me money using Credit Card, I am not responsible for it and its up to you to get it back [I will not send it back] However, if your Paypal is funded by a Bank, I will do trade with you. You are expected to, and must "Claim and Cancel" in order to trade with me. I reserve the right to refuse to sell to any buyer i am suspicious of, or cancel the sale at any time during it for my own safety. To know more about claiming and canceling, read this thread: http://www.sythe.org/showthread.php?t=149307
Click to expand...

Say, someone comes up to you & agrees to the above disclaimer. After that, he sends you cash but how would you know his cash is Credit Card funded or not?

How to find Credit Card funded Payments?

Way #1
This method is yet to be confirmed but simple. If someone sends you a Credit Card funded payment then it would have a fee deducted from it! If your buyer had money in his Paypal obtained by Method #1 [above] then Paypal would not charge you that extra commission since sending from Paypal to Paypal is free. However, Credit Card funded payments will be charged a small percentage of fee (about $3 per 50 bucks sent)

How can you check if a fee is deducted on the payment you are receiving? Well, when you receive the payment, click on the detail link (shown below) and you will see the payment in a new window along with other details. If a fee is deducted, then it will show below the payment and Paypal will deduct that commission from your payment and show you the 'net payment' which you will actually receive.

If someone still sends you a payment via Credit Card fundings to your Paypal account & later says they didn't read your disclaimer then do notdo not send it back.
send it back. I repeat,
Why? because what you send is, your own money, they can still claim their own money back [means they will get your money + their money] So tell them to claim it back themselves and point to your disclaimer. This is because, according to the rules, its not your fault.

How to Check for Stolen Paypal Accounts

There is 2 kinds of paypal account scams. One being the paypal account having a stolen credit card added and another one being the whole paypal account is someone else's than that of the person who is doing the trade with you.

- The first part, that is the above guide tells you how you can escape from Credit Card fraud. However to check if the account belongs to the person who claims it as his/her, you need to read on.

- Ask the person's paypal email account that he/she is going to use to send you the cash. Then send a message (email from your inbox) to that email address a code...or a secret message and ask the person to read it back to you.

- Now if the person owns that paypal account then he would own that email address too, means he can read the secret message/code. If not he/she will fail, then that account is a stolen paypal account.

How to Claim & Cancel in Paypal *Finally Here! YAY?*

Now, you finished Claiming, for the canceling part, follow the instructions again!

Hope that helps you! If it does, a thank you reply is welcomed and please do PM me any new problems you are getting from paypal.
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Alteranz · Nov 26, 2011

Deleted and archived, thanks

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