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Fraud Within PayPal

Writer Wishes To Remain Anonymous

I am writing to inform you of a similar problem I am currently experiencing with Paypal.  A few days ago, I received fraudulents funds via Paypal for an auction I posted on Ebay.  I sent the merchandise out via UPS only to receive an email from Paypal shortly after informing me of this misfortune.

Now I accept the fact that Paypal must freeze my funds pending an investigation.  I complied with all of Paypals request  promptly providing them with all relevant information including UPS tracking information.  I submitted all this information via email.

Shortly thereafter, I received another email from Paypal informing me that the UPS tracking number is invalid.  I rechecked the tracking number and verifed this number on the UPS website.  I also called UPS directly via telephone to confirm this was indeed a valid tracking number.  They verified the validity of the tracking information.

I subsequently made a call to Paypal informing them of my findings.  The service rep was kind enough to log onto the UPS website and input the tracking information herself.  The tracking information came up right away on the website.  She confirmed that this was a valid tracking number.

However, she claimed that she had no direct communication with the investigation team and that she could not forward her findings to them.  I asked her if I could fax them a copy of the UPS information only to be informed that Paypal does not accept faxes.  I asked her if I could speak to the team directly  to help clear matters.  She informed me that this was also not possible.

She informed me that the only way to resolve this issue is to resend another email with the exact same shipping information.  At this point, I was extremely annoyed and frustrated by the imcompetence of the service team at Paypal.  I also felt very helpless and at a complete loss.

Paypal has a sellers protection policy which supposedly protects sellers in the case of fraud as long as the following conditions are met:

1) Sellers ships to a verified Paypal member and a confirmed address  ( I did this)
2) Sellers ships in a timely manner (within 7 days) and ships within the United States ( I did this)
3) Seller provides valid tracking information ( I did this)
4) Seller receives payment from only one source ( I did this)
5) Ship tangible goods (I did this)

I met all the conditions.  Paypal informed me that the investigation would take a few days.  I accept this.  However, when they are lying to me and saying that information that I provided was invalid and the fact that they are restricting my ability to prove the validity of the information is absolutely appalling.

I have no more faith in the Paypal system.  Their sellers protection policy provides only $5000 fraud protection on an annual basis.  This is also unbelievable.

If their system is unable to protect their loyal customers of fraud, I believe they should, AT THE VERY LEAST, RAISE THIS LIMIT.

If I fall victim to another fraud situation, I could be looking at a large financial hit.  I dont think this is fair at all  considering all the fees I pay to these guys.

What Im trying to say is that Im very frustrated with Paypals customer service and their inability to cooperate with their customers.  Ive already written to a couple lawyers as well as the California attorney generals office.

The bottom line is that Paypal (despite being a multi-million dollar company), offers the absolute worst customer service.  Paypal is not a registered bank nor is FDIC insured.  Yet is acts and charges people bank and transfer fees.  It will take money from your checking account for any reason, at or even before the time they contact you.  From my understanding, Paypal has already been expelled from conducting business in one state and are under investigation in two other states (CA being one of them).

I just hope we can make Paypal and the internet a safer place to conduct business.

Thanks for all your help.  It is appreciated by so many people.

Thank you again.

Posted: May 9, 2012 at 12:12 pm


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One thought on “Fraud Within PayPal
  1. Lukey B on

    Fighting fraud claims with paypal can be a living hell. Even when you comply with them it doesn’t mean that you will win or they will be empathic to your case.

    Reply