PayPal “Cancel Payment” Phishing Scam [Explained]

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Written by: Stelian Pilici

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Scams have become an unfortunate reality in the digital age, with cybercriminals constantly devising new ways to deceive unsuspecting individuals. One such scam that has gained prominence in recent years is the PayPal “Cancel Payment” phishing scam. This article aims to shed light on what this scam entails, how it works, what to do if you have fallen victim, and provide valuable insights to help protect yourself from falling prey to such scams.

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What is the PayPal “Cancel Payment” Phishing Scam?

The PayPal “Cancel Payment” phishing scam is a fraudulent scheme that targets PayPal users, aiming to steal their login credentials and gain unauthorized access to their accounts. The scam typically begins with an email or text message that appears to be from PayPal, informing the recipient that a payment they made has been canceled. The message often includes a sense of urgency, urging the recipient to take immediate action to resolve the issue.

How Does the Scam Work?

The scam works by exploiting the trust and familiarity users have with PayPal’s interface and processes. Here is a step-by-step breakdown of how the PayPal “Cancel Payment” phishing scam typically unfolds:

  1. The scammer sends an email or text message to the target, posing as PayPal.
  2. The message informs the recipient that a payment they made has been canceled and provides a link to resolve the issue.
  3. When the recipient clicks on the link, they are directed to a fake PayPal login page that closely resembles the legitimate PayPal website.
  4. The victim is prompted to enter their PayPal login credentials, including their email address and password.
  5. Once the victim enters their login credentials, the scammer captures the information and gains unauthorized access to the victim’s PayPal account.
  6. The scammer can then use the compromised account to make unauthorized transactions, access personal information, or even transfer funds to their own accounts.

What to Do If You Have Fallen Victim?

Discovering that you have fallen victim to the PayPal “Cancel Payment” phishing scam can be distressing, but it is crucial to take immediate action to minimize the damage. Here are the steps you should follow if you have fallen victim to this scam:

  1. Change your PayPal password: As soon as you realize you have been scammed, change your PayPal password to prevent further unauthorized access to your account.
  2. Contact PayPal: Report the incident to PayPal’s customer support immediately. They can guide you through the necessary steps to secure your account and investigate any unauthorized transactions.
  3. Scan your device for malware: Run a thorough scan of your device using reputable antivirus software, such as Malwarebytes Free, to ensure that no malicious software has been installed.
  4. Monitor your financial accounts: Keep a close eye on your bank and credit card statements for any suspicious activity. If you notice any unauthorized transactions, contact your financial institution immediately.
  5. Be cautious of future communications: Exercise caution when receiving emails or text messages claiming to be from PayPal. Verify the authenticity of such communications by directly logging into your PayPal account instead of clicking on links provided in the messages.

Technical Details of the Scam

The PayPal “Cancel Payment” phishing scam relies on social engineering techniques and the creation of convincing fake websites. Here are some technical details of the scam:

  • Domain Spoofing: Scammers often use domain spoofing techniques to create fake websites that closely resemble the legitimate PayPal website. They may use similar domain names or subdomains to trick users into believing they are on the official PayPal site.
  • SSL Certificates: To further deceive users, scammers may obtain SSL certificates for their fake websites, making them appear secure and legitimate. However, it is important to note that SSL certificates can be easily obtained, and their presence does not guarantee the authenticity of a website.
  • Email Spoofing: Scammers may use email spoofing techniques to make their messages appear as if they are coming from PayPal. They may manipulate the sender’s name, email address, or even use official PayPal logos and branding to make the emails seem genuine.

Statistics on PayPal Phishing Scams

PayPal phishing scams have become increasingly prevalent in recent years, with cybercriminals exploiting the trust users place in the platform. Here are some statistics that highlight the scale of the issue:

  • In 2020, PayPal was the second most impersonated brand in phishing attacks, accounting for 22% of all phishing attempts.
  • According to the Anti-Phishing Working Group (APWG), there was a 14% increase in phishing attacks targeting payment services in the first quarter of 2021.
  • A study conducted by cybersecurity firm Cyren found that PayPal phishing scams accounted for 39% of all phishing attacks in the first half of 2021.

Summary

The PayPal “Cancel Payment” phishing scam is a deceptive scheme that aims to steal users’ PayPal login credentials and gain unauthorized access to their accounts. By posing as PayPal and creating convincing fake websites, scammers trick unsuspecting individuals into entering their login information. If you have fallen victim to this scam, it is crucial to change your password, contact PayPal, scan your device for malware, monitor your financial accounts, and exercise caution with future communications. The prevalence of PayPal phishing scams highlights the need for users to remain vigilant and take proactive measures to protect their online accounts and personal information.

How to Stay Safe Online

Here are 10 basic security tips to help you avoid malware and protect your device:

  1. Use a good antivirus and keep it up-to-date.

    Shield Guide

    It's essential to use a good quality antivirus and keep it up-to-date to stay ahead of the latest cyber threats. We are huge fans of Malwarebytes Premium and use it on all of our devices, including Windows and Mac computers as well as our mobile devices. Malwarebytes sits beside your traditional antivirus, filling in any gaps in its defenses, and providing extra protection against sneakier security threats.

  2. Keep software and operating systems up-to-date.

    updates-guide

    Keep your operating system and apps up to date. Whenever an update is released for your device, download and install it right away. These updates often include security fixes, vulnerability patches, and other necessary maintenance.

  3. Be careful when installing programs and apps.

    install guide

    Pay close attention to installation screens and license agreements when installing software. Custom or advanced installation options will often disclose any third-party software that is also being installed. Take great care in every stage of the process and make sure you know what it is you're agreeing to before you click "Next."

  4. Install an ad blocker.

    Ad Blocker

    Use a browser-based content blocker, like AdGuard. Content blockers help stop malicious ads, Trojans, phishing, and other undesirable content that an antivirus product alone may not stop.

  5. Be careful what you download.

    Trojan Horse

    A top goal of cybercriminals is to trick you into downloading malware—programs or apps that carry malware or try to steal information. This malware can be disguised as an app: anything from a popular game to something that checks traffic or the weather.

  6. Be alert for people trying to trick you.

    warning sign

    Whether it's your email, phone, messenger, or other applications, always be alert and on guard for someone trying to trick you into clicking on links or replying to messages. Remember that it's easy to spoof phone numbers, so a familiar name or number doesn't make messages more trustworthy.

  7. Back up your data.

    backup sign

    Back up your data frequently and check that your backup data can be restored. You can do this manually on an external HDD/USB stick, or automatically using backup software. This is also the best way to counter ransomware. Never connect the backup drive to a computer if you suspect that the computer is infected with malware.

  8. Choose strong passwords.

    lock sign

    Use strong and unique passwords for each of your accounts. Avoid using personal information or easily guessable words in your passwords. Enable two-factor authentication (2FA) on your accounts whenever possible.

  9. Be careful where you click.

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    Be cautious when clicking on links or downloading attachments from unknown sources. These could potentially contain malware or phishing scams.

  10. Don't use pirated software.

    Shady Guide

    Avoid using Peer-to-Peer (P2P) file-sharing programs, keygens, cracks, and other pirated software that can often compromise your data, privacy, or both.

To avoid potential dangers on the internet, it's important to follow these 10 basic safety rules. By doing so, you can protect yourself from many of the unpleasant surprises that can arise when using the web.

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