Uncovering the PayPal Unauthorized Transaction Scam Stealing Millions
Written by: Stelian Pilici
Published on:
PayPal has become one of the most widely used online payment platforms, with millions of users worldwide trusting it to securely manage their financial transactions. However, as with any major financial service, PayPal also faces sophisticated scammers looking to exploit users through deceptive tactics and social engineering. One such prevalent scam involves fraudulent emails purporting to be from PayPal and warning recipients about an unauthorized transaction on their account.
This article will provide an in-depth explainer on how the “PayPal Unauthorized Transaction” phishing scam operates, insights into the scammers’ tactics, tips to identify and avoid falling victim, and most importantly, guidance on what to do if you received such an email or already shared personal information.
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Overview of the Scam
The scam email in question follows a similar template, informing recipients that an unauthorized iPhone purchase for several hundred dollars was made from their PayPal account. It instructs them to call the listed customer support numbers urgently to cancel the order and secure their account.
Of course, both the transaction and customer support numbers are completely fabricated. The email is not from PayPal but scammers impersonating the company. Their aim is to trick recipients into calling the number and then exploiting various social engineering techniques to obtain login credentials or enough personal information to access their PayPal account and funds.
Some key traits that distinguish this scam email from legitimate PayPal communications:
Sender email does not come from an official PayPal domain
Grammatical errors and stylistic inconsistencies
Suspicious links unrelated to PayPal in the email footer or body
Unusual formatting and design compared to PayPal’s official templates
Request for sensitive information over phone, which PayPal would never do
Once recipients call the number, the scammers posing as PayPal support often utilize clever psychological tactics to gradually gain their trust and extract login details, account numbers, Social Security Number, credit card info, or online banking credentials.
These details then enable them to steal funds, make unauthorized transactions, or sell the information on the dark web. According to the FBI’s Internet Crime Complaint Center (IC3), PayPal and other online payment scams resulted in losses of over $58 million in 2020 alone, indicating the scale and risk this presents.
How the Scam Works
Now that we understand the basic premise, let’s explore how the scammers carry out this scam step-by-step to successfully deceive PayPal users:
Obtaining Recipient Email Addresses
The first step for the scammers is getting a large number of email addresses to send the phishing scam messages to. Some of the ways they gather these include:
Purchasing email lists on the dark web: There are sellers offering millions of email addresses, often harvested from past data breaches, account takeovers, and malware infections.
Phishing botnets: These infect thousands of computers and quietly collect email contacts and other information to build mailing lists.
Email appending services: These add email addresses to existing lead lists by matching names and profiles.
Social engineering sites: Scammers create fake transaction and social sites to get users to input their email and details, which are then added to scam lists.
So by using various methods, the scammers are able to put together massive mailing lists of potential victims for targeting.
Crafting Deceptive Emails
The content of the email is designed to cause alarm and urgency to trick users into calling the number:
Sender details: The “From” name is listed as PayPal to mimic a notice from their security team. The sender email uses strings like “protection@account-paypal” instead of an official domain.
Logos and branding: PayPal’s logo banner and trademark fonts are copied to further legitimize the email.
Transaction details: A specific high-value unauthorized iPhone purchase is described to trigger recipient concern. Fake order and transaction IDs are provided.
Call for urgent action: Emphatic language clearly tells the user to call the provided number immediately to cancel the order and secure their account.
Customer support numbers: Two US numbers are listed as PayPal support with assurances they will help resolve the issue. In reality, both go to scammer call centers.
Footer links: Additional misleading links are included, usually unrelated to PayPal, which serve to track email open rates.
Once the deceitful email is crafted, often with stolen PayPal branding, it is ready to be blasted out to the compiled list of target recipients.
Call Center Social Engineering
When recipients call the fake customer support numbers, the scam enters its final stage through sophisticated social engineering tactics. The goals of the call center scammers are:
Gaining trust: They pose as PayPal support agents and provide fake names. They express concern about unauthorized activity and claim they are there to help protect the user’s account.
Extracting information: Through strategic conversation, they get users to voluntarily reveal account details, credit card info, online banking credentials, SSNs, and ultimately email and password access.
Installing malware: They may send links to fake account management portals which contain malware to infect the user’s device and steal stored information.
Completing transactions: With enough data, they can transfer funds from PayPal and connected financial accounts or make direct purchases.
Some specific techniques the call center scammers use include:
Urgency and fear: They emphasize that immediate action is needed to cancel orders and secure accounts. The threat of losing money pressures users.
Chatting: Friendly small talk helps build rapport before shifting the conversation towards obtaining sensitive info.
Confidence: Scammers sound professional and make liberal use of technical and financial jargon.
Reassurance: They claim any information provided is strictly between the user and PayPal for resolving the issue.
Verification: They confirm user details like SSNs under the guise of identity verification before taking over accounts.
Cleanup: Any installed malware is removed, and scammers may even apologize and direct victims to reset passwords, too late by then.
Even savvy internet users can get deceived by these tactics which play on emotions like fear and urgency. The scammers leverage the inherent trust people have in widely used brands like PayPal to lower their guard. Once critical account access and financial data is handed over, recipients find themselves the victims of full-fledged identity theft and account takeover fraud.
What to Do If You Have Fallen Victim
If you receive an email like this purportedly from PayPal regarding an unauthorized transaction, or have been tricked into calling the number and providing personal information, here are the vital steps to take immediately:
1. Contact PayPal
Call PayPal’s real customer service hotline at 1-844-2929 or log into your account via their official website.
Explain you received a fraudulent email and unauthorized access may have been gained to your account. Request that they lock the account immediately to prevent further abuse.
2. Review Account Activity
Closely monitor your PayPal account and connected payment sources like bank accounts and credit cards for any signs of unauthorized transactions.
Watch for transfers, balance withdrawals, or purchases you did not make. Document any suspicious activity.
3. Reset Passwords
Once your account is locked, promptly reset your PayPal password to prevent the scammers from further access.
Additionally change passwords on associated financial accounts like bank accounts or PayPal-linked credit cards as a security precaution.
Avoid reusing old passwords going forward when you change them.
4. Contact Banks/Credit Card Companies
Notify your bank and credit card provider if you disclosed related account details over the call.
Ask them to tighten security, monitor for fraud, reissue cards, and revert unauthorized transactions if caught early enough.
5. Place Fraud Alert
Contact one of the three credit bureaus to place an initial 90-day fraud alert if critical identity information like SSN or account numbers were compromised.
This obligates the other bureaus to also monitor your credit for any suspicious activity.
6. Report to Authorities
File a complaint with the FTC regarding the PayPal phishing scam at ReportFraud.ftc.gov.
Additionally contact the FBI Internet Crime Complaint Center at IC3.gov and your local authorities to report the scam. Provide any details on the scammers in your report.
7. Scan Devices
Run anti-virus scans on your computers and devices used to contact the scammers or click any of their email links to detect and remove malware.
A compromised device means your data is still at risk even with changed account passwords.
Quick action to lock down accounts and report the scam limits the damage from such social engineering frauds. But preventing becoming a victim in the first place is obviously the ideal outcome.
How to Spot and Avoid the Scam
Here are some tips to identify and avoid falling for this PayPal unauthorized transaction phishing scam:
Analyze Email Sender Details
Verify that the sender email is from an official “@paypal.com” address. Scammers often use lookalike domains.
Watch for spelling discrepancies in the sender name like “PayPa1” and grammar issues which signal phishing attempts.
Check Hyperlinks
Don’t click on any links in the body or footer of the email without first hovering over them to preview the URLs.
Scam links often contain misspelled or completely unrelated domains instead of “paypal.com”.
Contact PayPal Directly
Go to PayPal’s website or use their official app to view any account notifications. An unauthorized transaction would be properly reported here.
Call PayPal’s published customer support line at 1-844-2929 to confirm any emailed notices you received.
Never Call Provided Numbers
Legitimate companies don’t ask customers to call unverified phone numbers from random emails for support.
Calling the number provides scammers direct access to you for extracting sensitive information via social engineering.
Avoid Sharing Account Details
Never share your PayPal password, online banking logins, full credit card data, SSNs, or other sensitive details over calls, emails, texts, or web forms.
Real customer support would never request or need this information from you.
Use Strong Passwords
Always use randomly generated strong, unique passwords for PayPal and connected financial accounts.
Password reuse allows scammers to access multiple accounts if one is compromised.
Use a password manager if needed to keep track of different passwords.
Install Security Software
Maintain active and updated antivirus software, firewalls, spam filters, and anti-phishing extensions or browser protections.
This provides multiple layers of defense against phishing links, caller ID spoofing, and malware.
Staying vigilant against common telltale signs of phishing and social engineering scams remains your best protection against online fraud. Limit any personal information shared outside of trusted sites or calls you initiated to vendors directly.
If you do receive a suspicious contact, report it to the legitimate company, ignore the provided phone numbers, and reset your account passwords as a precaution.
Is Your Device Infected? Check for Malware
If your device is running slowly or acting suspicious, it may be infected with malware. Malwarebytes Anti-Malware Free is a great option for scanning your device and detecting potential malware or viruses. The free version can efficiently check for and remove many common infections.
Malwarebytes can run on Windows, Mac, and Android devices. Depending on which operating system is installed on the device you’re trying to run a Malwarebytes scan, please click on the tab below and follow the displayed steps.
Malwarebytes For WindowsMalwarebytes For MacMalwarebytes For Android
Scan your computer with Malwarebytes for Windows to remove malware
Malwarebytes stands out as one of the leading and widely-used anti-malware solutions for Windows, and for good reason. It effectively eradicates various types of malware that other programs often overlook, all at no cost to you. When it comes to disinfecting an infected device, Malwarebytes has consistently been a free and indispensable tool in the battle against malware. We highly recommend it for maintaining a clean and secure system.
Download Malwarebytes for Windows
You can download Malwarebytes by clicking the link below.
After the download is complete, locate the MBSetup file, typically found in your Downloads folder. Double-click on the MBSetup file to begin the installation of Malwarebytes on your computer. If a User Account Control pop-up appears, click “Yes” to continue the Malwarebytes installation.
Follow the On-Screen Prompts to Install Malwarebytes
When the Malwarebytes installation begins, the setup wizard will guide you through the process.
You’ll first be prompted to choose the type of computer you’re installing the program on—select either “Personal Computer” or “Work Computer” as appropriate, then click on Next.
Malwarebytes will now begin the installation process on your device.
When the Malwarebytes installation is complete, the program will automatically open to the “Welcome to Malwarebytes” screen.
On the final screen, simply click on the Open Malwarebytes option to start the program.
Enable “Rootkit scanning”.
Malwarebytes Anti-Malware will now start, and you will see the main screen as shown below. To maximize Malwarebytes’ ability to detect malware and unwanted programs, we need to enable rootkit scanning. Click on the “Settings” gear icon located on the left of the screen to access the general settings section.
In the settings menu, enable the “Scan for rootkits” option by clicking the toggle switch until it turns blue.
Now that you have enabled rootkit scanning, click on the “Dashboard” button in the left pane to get back to the main screen.
Perform a Scan with Malwarebytes.
To start a scan, click the Scan button. Malwarebytes will automatically update its antivirus database and begin scanning your computer for malicious programs.
Wait for the Malwarebytes scan to complete.
Malwarebytes will now scan your computer for browser hijackers and other malicious programs. This process can take a few minutes, so we suggest you do something else and periodically check the status of the scan to see when it is finished.
Quarantine detected malware
Once the Malwarebytes scan is complete, it will display a list of detected malware, adware, and potentially unwanted programs. To effectively remove these threats, click the “Quarantine” button.
Malwarebytes will now delete all of the files and registry keys and add them to the program’s quarantine.
Restart your computer.
When removing files, Malwarebytes may require a reboot to fully eliminate some threats. If you see a message indicating that a reboot is needed, please allow it. Once your computer has restarted and you are logged back in, you can continue with the remaining steps.
Your computer should now be free of trojans, adware, browser hijackers, and other malware.
If your current antivirus allowed this malicious program on your computer, you may want to consider purchasing Malwarebytes Premium to protect against these types of threats in the future. If you are still having problems with your computer after completing these instructions, then please follow one of the steps:
Scan your computer with Malwarebytes for Mac to remove malware
Malwarebytes for Mac is an on-demand scanner that can destroy many types of malware that other software tends to miss without costing you absolutely anything. When it comes to cleaning up an infected device, Malwarebytes has always been free, and we recommend it as an essential tool in the fight against malware.
Download Malwarebytes for Mac.
You can download Malwarebytes for Mac by clicking the link below.
When Malwarebytes has finished downloading, double-click on the setup file to install Malwarebytes on your computer. In most cases, downloaded files are saved to the Downloads folder.
Follow the on-screen prompts to install Malwarebytes.
When the Malwarebytes installation begins, you will see the Malwarebytes for Mac Installer which will guide you through the installation process. Click “Continue“, then keep following the prompts to continue with the installation process.
When your Malwarebytes installation completes, the program opens to the Welcome to Malwarebytes screen. Click the “Get started” button.
Select “Personal Computer” or “Work Computer”.
The Malwarebytes Welcome screen will first ask you what type of computer are you installing this program, click either Personal Computer or Work Computer.
Click on “Scan”.
To scan your computer with Malwarebytes, click on the “Scan” button. Malwarebytes for Mac will automatically update the antivirus database and start scanning your computer for malware.
Wait for the Malwarebytes scan to complete.
Malwarebytes will scan your computer for adware, browser hijackers, and other malicious programs. This process can take a few minutes, so we suggest you do something else and periodically check on the status of the scan to see when it is finished.
Click on “Quarantine”.
When the scan has been completed, you will be presented with a screen showing the malware infections that Malwarebytes has detected. To remove the malware that Malwarebytes has found, click on the “Quarantine” button.
Restart computer.
Malwarebytes will now remove all the malicious files that it has found. To complete the malware removal process, Malwarebytes may ask you to restart your computer.
Your Mac should now be free of adware, browser hijackers, and other malware.
If your current antivirus allowed a malicious program on your computer, you might want to consider purchasing the full-featured version of Malwarebytes Anti-Malware to protect against these types of threats in the future. If you are still experiencing problems while trying to remove a malicious program from your computer, please ask for help in our Mac Malware Removal Help & Support forum.
Scan your phone with Malwarebytes for Android to remove malware
Malwarebytes for Android automatically detects and removes dangerous threats like malware and ransomware so you don’t have to worry about your most-used device being compromised. Aggressive detection of adware and potentially unwanted programs keeps your Android phone or tablet running smooth.
Download Malwarebytes for Android.
You can download Malwarebytes for Android by clicking the link below.
In the Google Play Store, tap “Install” to install Malwarebytes for Android on your device.
When the installation process has finished, tap “Open” to begin using Malwarebytes for Android. You can also open Malwarebytes by tapping on its icon in your phone menu or home screen.
Follow the on-screen prompts to complete the setup process
When Malwarebytes will open, you will see the Malwarebytes Setup Wizard which will guide you through a series of permissions and other setup options. This is the first of two screens that explain the difference between the Premium and Free versions. Swipe this screen to continue. Tap on “Got it” to proceed to the next step. Malwarebytes for Android will now ask for a set of permissions that are required to scan your device and protect it from malware. Tap on “Give permission” to continue. Tap on “Allow” to permit Malwarebytes to access the files on your phone.
Update database and run a scan with Malwarebytes for Android
You will now be prompted to update the Malwarebytes database and run a full system scan.
Click on “Update database” to update the Malwarebytes for Android definitions to the latest version, then click on “Run full scan” to perform a system scan.
Wait for the Malwarebytes scan to complete.
Malwarebytes will now start scanning your phone for adware and other malicious apps. This process can take a few minutes, so we suggest you do something else and periodically check on the status of the scan to see when it is finished.
Click on “Remove Selected”.
When the scan has been completed, you will be presented with a screen showing the malware infections that Malwarebytes for Android has detected. To remove the malicious apps that Malwarebytes has found, tap on the “Remove Selected” button.
Restart your phone.
Malwarebytes for Android will now remove all the malicious apps that it has found. To complete the malware removal process, Malwarebytes may ask you to restart your device.
Your phone should now be free of adware, browser hijackers, and other malware.
If your current antivirus allowed a malicious app on your phone, you may want to consider purchasing the full-featured version of Malwarebytes to protect against these types of threats in the future. If you are still having problems with your phone after completing these instructions, then please follow one of the steps:
Restore your phone to factory settings by going to Settings > General management > Reset > Factory data reset.
This is a phishing scam where recipients receive a fraudulent email claiming an unauthorized transaction was made from their PayPal account. The email instructs them to call a provided customer support number urgently to cancel the order. The numbers actually connect to scammers who use social engineering to extract account details and steal funds.
How do I know if I received the scam email?
Warning signs include an unknown sender address, grammatical errors, fake PayPal branding, urgent requests to call, threats of account suspension, and unfamiliar links in the email. Legitimate PayPal notifications come from an official “@paypal.com” address.
What information do the scammers attempt to get?
By posing as PayPal support, the scammers try to trick callers into revealing their PayPal password, credit card numbers, bank account and routing details, SSN, answers to security questions, and other sensitive account access credentials.
What should I do if I called the number on the email?
Immediately contact PayPal to lock your account. Monitor financial statements and passwords closely for fraudulent activity. Report the scam to authorities to aid investigations. And scan your devices for potential malware. Even if no action occurred yet, scammers may have enough data to eventually access your accounts.
Can PayPal fully reverse any unauthorized transactions?
If reported quickly, PayPal can halt pending transfers and refund completed payments from your balance or linked cards. The quicker unauthorized activity is reported, the more likely the transactions can be stopped or reserved. But recovery options decrease over time.
Should I avoid calling any numbers provided in unexpected emails?
Yes, calls give scammers direct access to you. You should never call unverified numbers in emails claiming to be from financial companies. Instead contact the organization directly through their official website or customer support lines to check on any emailed notices.
How can I protect myself from this scam?
Watch for deceptive emails, use strong unique passwords, install security software, avoid calling or sharing sensitive data, and report any phishing attempts. Limiting the personal details provided to unsolicited contacts limits your exposure to such scams.
Let me know if you would like me to expand or clarify any part of this FAQ!
The Bottom Line
The PayPal unauthorized transaction scam poses a serious threat to victims due to effective social engineering strategies that extract account credentials and personal data from callers. Preventing your email from being on scam lists, identifying deceptive messages, and avoiding calling or sharing information limits your exposure.
If you unfortunately did fall victim after receiving an email and calling, quickly contact PayPal to lock your account, monitor financial statements, reset passwords, report the fraud to authorities, and scan devices. PayPal’s strong security features can limit unauthorized activity if reported fast enough.
Stay vigilant for common phishing tactics and treat any unexpected calls or emails requesting private data as extremely suspicious. Following best practices greatly reduces the chances of having your accounts compromised or losing funds to such scams. Yet despite one’s best efforts, these threats continue evolving, so maintaining awareness and caution when contacted about account issues is essential.
How to Stay Safe Online
Here are 10 basic security tips to help you avoid malware and protect your device:
Use a good antivirus and keep it up-to-date.
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.
Keep software and operating systems up-to-date.
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.
Be careful when installing programs and apps.
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."
Install an 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.
Be careful what you download.
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.
Be alert for people trying to trick you.
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.
Back up your data.
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.
Choose strong passwords.
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.
Be careful where you click.
Be cautious when clicking on links or downloading attachments from unknown sources. These could potentially contain malware or phishing scams.
Don't use pirated software.
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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Meet Stelian Pilici
Stelian leverages over a decade of cybersecurity expertise to lead malware analysis and removal, uncover scams, and educate people. His experience provides insightful analysis and valuable perspective.
