PayPal Credit Card Fraud

  swanson2 23:49 08 Nov 2005


I post this as a possible warning to other users of PayPal.

I have been making purchases on line for many years and until a few weeks ago never had any problems.

I never reveal my credit card or any other details to spoof sites and am ultra catious about security.

However I recently had a large amount of money taken from my Credit Card Account via a number of PayPal transactions that I knew nothing about.

Fortunately I discovered the withdrawals fairly quickly and put a stop on my Credit Card.

I have now got a replacement Credit Card and my Credit Card company has fully refunded me for the money that was illegally talken from my account.

PayPal were not interested at all when I reported the theft to them - and trying to contact someone by telephone to discuss the matter proved nigh on impossible!

I have therefore cancelled my PayPal account and will never use them again.

Hope this might prevent someone else from having the same happen to them.

  Harpur 00:00 09 Nov 2005

this also happened to a friend of mine who used paypal on ebay. somebody was using his account to sell non existant goods and then transferring the money out to a seperate barclays account in england (we live in northern ireland). the first he knew about it was a letter from paypal threatening legal action for the lost sum of over £3000. did the same as above but thet are not interested even though there is a police investigation and the barclays account in england has been discovered and have now issued a court order. again they are not interested in his explanations but only in recovering the money they have had to repay to these people who bought the non existant goods.

a salutary lesson to us all! i have also now cancelled my paypal account.

  spuds 09:42 09 Nov 2005

I am trying to get my head around this one. How can someone gain access to your PayPal account through eBay purchases and selling procedures!.

  sattman 11:13 09 Nov 2005

I am also trying to work this one out. No doubt it did occur.

  swanson2 14:48 09 Nov 2005


There was never any mention of eBay in any of the transactions.

I can only assume that it is possible to bill other than eBay services to PayPal directly?

In all I had five amounts of money taken out of my PayPal account over a period of three hours one evening (when I hadn't even been on my PC).

I identified the transaction details by accessing my PayPal account history.

Four of the transactions were to pay for Web Hosting services based in North America and one was to subscribe to an Internet Service in the UK.

The American transactions which were all billed in $US were with:

1. EruDynamix Web Services

2. 24365webhosting


4. Transparent Technologies

and the UK transaction billed in £ sterling was with a company called LiquidNet Ltd.

I contacted all the above service providers who mainly replied that they would block the accounts and I also gave all the information via eMail to PayPal and my Credit Card company.

I would have thought it was fairly easy for PayPal to locate the origin of this fraud but they obviously felt otherwise.

I don't know how it happened, but it did, and the apathy shown by PayPal has led me to start this thread.

I haven't lost any money thanks to my Credit Card Company (who had a very bad opinion of PayPal and it's follow up procedures) but I thought by sharing my experience it might save someone else suffering the same inconvenience.

  grumpygramp 16:22 09 Nov 2005

I stopped using PayPal back in 2003 when paid £12 to an English company located in the midlands and Paypal in their wisdom charged me £7.49 to change it from pounds to dollars and back again to pounds. I cancelled my account forthwith. yet this year when I went buy something and opted to pay direct I was told I could not as I had a Paypal Account. They cannot be trusted in my eyes . No doubt there will be others that swear by Paypal.

  [email protected] 02:40 14 Nov 2005

My e-bay, paypal & Yahoo accounts were hijacked about 1 year ago.

Luckily I noticed within a couple of hours of it starting & I managed to limit the damage.

Whoever was behind it bought a couple of hundred quids worth of stuff using "buy it now".

They bizzarely placed loads of bids into normal auctions & were outbid in almost all of them - they were obviously being careful with my money :-)

The morale of the story - Never ever ever ever ever use the same password for these accounts.... yes I know I was a chump (but how many of you reading this have just gone quiet?).

I dont know how Mr Hacker got hold of the password but once he got a hold of it it was easy for him to take control changing passwords & personal details as he went to stop me getting back in to any account.

All turned out well in the end & I got my accounts back & almost all my cash except for about a tenner lost in currency exchange.

I even got some positive feedback for my prompt payment for some of his purchases :-)

I still use paypal & ebay but am much more cautious & slightly less stupid.

  keewaa 09:46 14 Nov 2005

What good alternatives do people recommend ?

  sattman 10:06 14 Nov 2005

The con is set up initially by directing you to a false site, where you are giving out your account password to a third party. You need to be very carefull and always ensure that you are on a secure site. Make it a habit each time you visit.

click here

click here

  spuds 10:30 14 Nov 2005

Since Friday,after PayPal on-line service maintenance work, I was unable to settle any bills.Checking the Community forum, other people were having similar problems. Three phone calls to the Irish call centre, which achieved absolutely nothing. Then in this morning email,I receive another request to fill in a questionnaire about PayPals commitment to excellence of service.The questionnaire actually comes from a company called, not a good move by PayPal I would say.

When you are trying to pay money to a seller, and you cannot, doesn't it make you feel are fool, when the seller is wondering why they haven't been paid. Should add, that about 4pm on Sunday, the service returned. Nearly two days waiting, and getting more embarrassed.

  swanson2 15:33 14 Nov 2005


It's interesting that neither eBay or PayPal have added a response in this thread.

I let PayPal know (via e-mail) that I was posting a warning about their company on the PCA site and thought that they might have offererd an explanation.

To depress you even further:

After my credit card company refunded my account, I rang them up to thank them and also to ask them to follow up the fraud via PayPal.

The response I got was that it wasn't worth their while for a "relatively" small amount of money.

The lady I spoke to also told me that since joining the bank fraud investigation department she personally had stopped using credit cards for any purchases whatsoever and just used cash!

However I will stick with my credit card purchases both on the Internet and elsewhere and just try and be ultra catious that nobody gets access to my personal details.

This thread is now locked and can not be replied to.

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