Unauthorized payment scam via paypal using VPN.

So is this really as simple as the buyer simply logging into their paypal once with a VPN to make a payment and then later claiming they know nothing about it and charging back?

Does this only work for certain types of transactions? Is there any kind of extra things the buyer has to do for this to work? Are there any risks to it? I'm interested. Has anyone here tried it before?

I think i'm going to attempt setting up a shop during DMM seasonal and want to avoid it if possible.

 

Haven't used Paypal in a very long time, but I think it would work. If Paypal is still the same as 2 years ago then you should even be cautious with people that file a chargeback without a VPN.

 

People often refer to it as a "chargeback". Person claims unauthorized payment from a different location (different ip) and Paypal just looks into it and offers refund.

 

If a buyer executes this scam repeatedly, Paypal will notice that and you will win the dispute. When fighting a chargeback I googled information about the scammer and found out he had done that on other websites. I then submitted the evidence to Paypal and won the dispute.

 

Yes, that can happen to you and it's a big problem with PayPal.

I suggest only accepting payments from verified PayPals, and imposing purchasing limits such as $50 or $100 max per week for low reputation customers.

You can take precautions such as ask the buyer to forward their PayPal receipt to make sure they're in control of the PayPal email.

You can take additional steps like giving them a phone call. Or making sure their location matches their payment details on PP.

Some told shops require customers to submit their ID's for certain purchases, but while you're still building reputation people might be understandably unwilling to do so.

Chargebacks will happen. Best thing you can do is maximize profit and minimize chargebacks as much as possible by being smart.

 

BTC is the safest way to go.

 

A lot of premium gold selling websites have protection against VPN usage. In your case, I think the best way is selling your gold for btc, then selling the btc to a trusted user for paypal.

 

So do gold shops nearly never lose chargebacks?