PayPal: Fraudulent Transaction! D'OH!

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  • rhino

    Grandmaster
    Rating - 100%
    24   0   0
    Mar 18, 2008
    30,906
    113
    Indiana
    I was looking at my credit card activity and saw a pending transaction that had originated via PayPal and a merchant I didn't know. Turned out to be some video game dealer in Europe and the charge was small, so I'm guessing it was a "test charge" for whomever got my account info. So, I changed my password and security questions, then disputed the transaction with PayPal.

    Anything else I need to do?

    The good news is that the bank account I used to open my PayPal account years ago has long since been closed. They tried to get the charge to go through by deducting from that account, but it failed and defaulted to the secure credit card number (not my account number) when it was processed.

    Was this someone using PayPal trying to hack my bank account?
     

    pudly

    Grandmaster
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    35   0   0
    Nov 12, 2008
    13,329
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    Undisclosed
    Removed suggestion- already done. Sounds more like the PayPal account was hacked, not your bank account. Sounds like this is already covered, but if your PP account is linked to any other active payment forms (other credit cards/etc.), then I would suggest contacting them and getting new account numbers as anyone who successfully logged onto your account could view the current payment account details.

    That is the risk of allowing others to hold details on your accounts. If the first account is hacked, then your other payment accounts are vulnerable.
     
    Last edited:

    rhino

    Grandmaster
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    24   0   0
    Mar 18, 2008
    30,906
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    Indiana
    Removed suggestion- already done. Sounds more like the PayPal account was hacked, not your bank account. Sounds like this is already covered, but if your PP account is linked to any other active payment forms (other credit cards/etc.), then I would suggest contacting them and getting new account numbers as anyone who successfully logged onto your account could view the current payment account details.

    That is the risk of allowing others to hold details on your accounts. If the first account is hacked, then your other payment accounts are vulnerable.

    Amen!

    The only credit card account information PayPal has is either of closed accounts (years ago) or secure numbers, some of which are connected to closed accounts. I tried to delete them all once, but they kept re-appearing.

    I'm never linking a valid bank account to them again, though!
     

    pudly

    Grandmaster
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    35   0   0
    Nov 12, 2008
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    I think they require it. I have my PP linked to a checking account with a small balance in it that has no overdraft privileges.
     

    wizard

    Plinker
    Rating - 100%
    1   0   0
    Sep 12, 2009
    114
    16
    Chesterton
    Don't give up, they usually give the business 45 days to agree or dispute your claim. They may repeat the transaction, then you have to start all over again. I spent 9 months disputing a $692.00 charge from a camera store in New York. Several times they would put the money back and a few days later charge it all over again. Finally the store missed the 45 day time limit and that ended it. Then I dumped Paypal forever. Good luck.
     

    .452browning

    Master
    Rating - 100%
    4   0   0
    I recently had my CC info hacked. Found a $15 charge in form of a Apple gift card to craigrussell35

    Bank said it was a test charge to see if I catch it before they hit big.

    Called the bank and apple. Got it cancelled and money returned. Had to get a new CC also.

    I added craigrussell35 to a bunch of mailing lists like cheap Viagra, weird porn sites, etc. Also sent him a nasty gram. He never returned my email.
     

    msk

    Marksman
    Rating - 100%
    2   0   0
    Dec 26, 2012
    142
    18
    With PayPal you can dispute charges. If it is a credit card unauthorized transaction, you have 180 days to file with your CC company. They will issue a chargeback and you should see he money returned to your account. Then Paypal and your CC company will investigate the transaction. If indeed it is fraudulent, the company that charged you will also get hit with the investigation fees.

    I am NOT a huge fan of paypal admittedly. It was convenient for a time, but now there are to many fees. I am hoping Google Wallet picks up steam.
     

    perry

    Master
    Rating - 100%
    2   0   0
    Nov 18, 2010
    2,036
    63
    Fishers, IN
    Similar thing happened to me a few years ago. I closed my Paypal account and now only use them when it's part of a checkout process for another site... one time charges only.
     

    nascarfantoo

    Master
    Rating - 100%
    9   0   0
    Oct 29, 2012
    3,168
    48
    Western IN
    Never had issue with PayPal, but have experienced someone stealing my CC # and using for on-line purchases. Fortunately it was a company American Express card. AE contacted me on a Sat. morning wanting to know if I had made a few transactions on-line that amounted to over $20K. All originated in China.
     

    joncon

    Sharpshooter
    Rating - 100%
    23   0   0
    Mar 30, 2013
    699
    47
    Bartholomew County
    I haven't had any problems with PayPal, but I've had to replace my credit card twice over the last few years. Once it was a person in Anderson. With a few phone calls to the business and the shipper I found the name and address of the thief. I called the Anderson PD and told them, the told me to call the sheriff as it was a county matter. Called the sheriff's dept, they were real s**ty about it, blasted me for bothering them about it since I didn't live in Anderson and said to contact my local sheriff dept. I turned everything over to my local sheriff. According to them when I checked a couple of months later the Anderson sheriff's dept hadn't followed through with it. I did get my money back through my credit card co. I suppose the person is still scamming other people's cards.
     

    Cameramonkey

    www.thechosen.tv
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    35   0   0
    May 12, 2013
    31,688
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    Camby area
    I had my paypal business debit card cloned up in canada. They drained my account in a matter of days at convenience stores, gas stations, and pizza places in $60-$120 increments. I went to use it and I was denied for insufficient funds. I called PayPal and they were VERY helpful and got each charge reversed. It probably also helped that they could see my single card being used 20 minutes apart... One in my local zip that follows my regular spending patterns, the other hundreds of miles away in another country. Both physical swipes. So either it was cloned or I own a delorean with a flux capacitor.

    And mine isnt required to be linked to a live money source. If I want to add money I either need to sell something on ebay, or do a one-time transfer from my checking account. I can optionally add a backup funding source, but its not required. Maybe I'm grandfathered though.
     

    drillsgt

    Grandmaster
    Rating - 100%
    108   0   0
    Nov 29, 2009
    9,627
    149
    Sioux Falls, SD
    I haven't had any problems with PayPal, but I've had to replace my credit card twice over the last few years. Once it was a person in Anderson. With a few phone calls to the business and the shipper I found the name and address of the thief. I called the Anderson PD and told them, the told me to call the sheriff as it was a county matter. Called the sheriff's dept, they were real s**ty about it, blasted me for bothering them about it since I didn't live in Anderson and said to contact my local sheriff dept. I turned everything over to my local sheriff. According to them when I checked a couple of months later the Anderson sheriff's dept hadn't followed through with it. I did get my money back through my credit card co. I suppose the person is still scamming other people's cards.

    Who are you to actually expect them to work?
     

    Indy_Guy_77

    Grandmaster
    Rating - 100%
    16   0   0
    Apr 30, 2008
    16,576
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    I'm pretty pleased with the way this has worked for me over the years. I make a fair amount of online purchases, often 2-3 a week.
    What is the recommended route to take with this?

    For online use - Credit Card.

    Easier / better protection, plus someone can't drain your checking/savings account with a credit card.

    Or at least use a pre-paid CC. Again - the key is to limit exposure to your checking/savings account.
     

    Cameramonkey

    www.thechosen.tv
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    35   0   0
    May 12, 2013
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    Camby area
    For online use - Credit Card.

    Easier / better protection, plus someone can't drain your checking/savings account with a credit card.

    Or at least use a pre-paid CC. Again - the key is to limit exposure to your checking/savings account.

    ^^^^^THIS!^^^^

    Also the liability limits can be MUCH lower with a credit card vs debit. It may have changed since I last looked, but In some places you may still be on the hook for the first $50-100 of a fraudulent debit transaction. A true credit card transaction is usually zero liability.

    Also you can use the right card for extra benefits. I have a Hilton Honors Amex card that gives me up to 5 points per dollar spent. I have an upcoming trip that wont cost me a dime to stay at a nice hotel ($150/night). All because I charged stuff to the right card and paid it off at the end of the month. CHA-CHING!
     

    bwframe

    Loneranger
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    93   0   0
    Feb 11, 2008
    38,170
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    Btown Rural
    For online use - Credit Card.

    Easier / better protection, plus someone can't drain your checking/savings account with a credit card.

    Or at least use a pre-paid CC. Again - the key is to limit exposure to your checking/savings account.

    I make online transactions with a debit card/account dedicated to that with a very minimum balance. Funds are transferred in to the account as needed to cover the transactions. How am I exposed other than a few $ left in the account to keep it positive?
     

    Indy_Guy_77

    Grandmaster
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    16   0   0
    Apr 30, 2008
    16,576
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    I make online transactions with a debit card/account dedicated to that with a very minimum balance. Funds are transferred in to the account as needed to cover the transactions. How am I exposed other than a few $ left in the account to keep it positive?

    That's one way to limit your exposure, for sure!
     

    rhino

    Grandmaster
    Rating - 100%
    24   0   0
    Mar 18, 2008
    30,906
    113
    Indiana
    I use secure numbers with my Discover account whenever possible. If someone gets the info, that number was only good for one merchant, so if it gets compromised, you know the source for sure. It also prevents anyone from getting your actual account number.

    Update:
    • No further action from PayPal - the info online says that they have emailed the merchant twice.
    • I deleted the valid bank account I had previously registered, but hadn't fully confirmed. They now have only the original bank account number I used when I started (which was closed years ago) and no valid credit card information.
    • Called Discover this morning - they recommended that I close my account and have the reissue a new account number and cards just in case. It's a pain in the a** (this is my fourth time over the years), especially updating all of the monthly payments I make with secure numbers, but it's better safe than sorry. Should have my new account info by Tuesday of next week. I won't be able to log into their web site or do much of anything else until then.
    • Next week I'll need to update all of my secure numbers for monthly payments like my ISP.

    After this dispute is resolved, I think I may cancel my PayPal account and just do one-time transactions when absolutely necessary as was mentioned by someone else above. How easy is it to get into someone's PayPal, anyway? My former password was strong, I never click on links in emails I don't recognize, etc.

    By the way, Discover has the best customer service in the industry. They are also ultra vigilant about suspicious activity on your account. If that matters to you, get an account. Use their secure number feature when you shop online.
     
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