- How the Craigslist PayPal Scam Works
- Red Flags of the Craigslist PayPal Scam
- How to Beat The Craigslist PayPal Scam
- Have You Fallen For The Craigslist PayPal Scam?
- Frequently Asked Questions
Unfortunately, any Craigslist user can become a victim of this PayPal scam. The scammers are very good at reassuring Craigslist users and providing convincing stories to make you trust them. Both Craigslist and PayPal are aware of these Craigslist buyer scams.
Still, the most important thing to remember is to double-check everything and don’t communicate with anyone who seems suspicious or untrustworthy. Anytime you use Craigslist to buy or sell items, it's important to look out for red flags of scams and to always proceed with caution.
How the Craigslist PayPal Scam Works
The scammer, posing as a buyer, sends you a fake link to either set up or access your PayPal account so they can transfer money to you. This fake phishing link is designed to collect your personal information and gain access to your PayPal account.
Here's how this scam works.
You Receive a Link to Create a PayPal Account Or to Verify Payment
First, the scammer will send you an email or text message asking to buy your item. They’ll tell you that they would like to pay with PayPal and ask if you have an account. If you say no, they’ll reply that it’s very easy to sign up and send you a link to do it. This communication will sound reassuring and helpful, but it’s a scam.
If you say yes, you will receive a payment confirmation email that looks like it’s from PayPal that requires you to authorize the transaction by clicking on a link.
Example Fake PayPal Email
You have a new incoming payment transfer on hold. For security reasons, We need to verify the sender and receiver of the payment.
A quick verification of your PayPal account is required to approve the incoming payment transfer. Your money will be added into your account within 2-4 business days.
You Are Sent to a Fake “PayPal” Login Page
The link from the scammer or in the email will look real, but it isn’t. It is a fake page set up by the scammer designed to look like PayPal to trick you. Even if it seems real to you, do not trust any link sent by a potential buyer. Do not enter any information on this page.
The Scammer Steals Your Information and Money
If you click the fake link and enter the requested information, such as your full name, address, bank account details, credit card information, or PayPal login credentials, the Craigslist PayPal scam is successful—the scammer has all of the personal information you entered. They can use this information to gain access to your bank, credit card, and PayPal account or steal your identity.
Red Flags of the Craigslist PayPal Scam
Scammers are usually good at making themselves seem legitimate, but there are some signs that you might be talking with a scammer trying to pull off this Craigslist PayPal scam on you. You may be able to identify the scam during your initial conversations with the buyer. Red flags include:
- Bad spelling or grammar
- Asking questions about “the item” instead of naming the item specifically
- Only wanting to pay via PayPal
- Claiming that they are out of town or use another excuse not to meet you face-to-face to buy the item
If a Craigslist buyer is adamant that they can only pay you via PayPal, be wary. Only accepting one form of payment, which isn't cash, is a huge red flag for Craigslist transactions.
The scammer’s goal is to convince you to sign up for a new PayPal account using the link they provide so they can steal your information (i.e., phishing). If you do click the link, you haven’t fallen for the scam quite yet. Some tell-tale signs of this scam can also be found on the fake page and email itself:
- Check the sender’s email address. If it’s not from an @paypal.com address, it’s a scam.
- Look at the URL. Fake PayPal websites will not have the official PayPal URL (https://www.paypal.com/) as the primary domain.
- Look for bad spelling or grammar.
- Make sure the PayPal logo is legit.
Also, note that when someone sends you payment via PayPal, you will receive a notification email from PayPal, but you won’t be required to authorize the incoming transfer, as the email states. If you receive an email like this, it’s likely a scam.
When receiving an email from "PayPal," look at the sender's email address. Some scammers try to trick you by changing the name attached to their email to something like "[email protected]" or "PayPal Customer Service" but they won't be able to change their email address to a legitimate PayPal one.
If you view the PayPal email in a web browser or click on the link provided, check the URL and make sure it's a real PayPal.com address. If you're ever in doubt, type "paypal.com" directly into your web browser and log in to your account that way.
The scammer will probably act very quickly once they have your personal information. It’s essential to pay close attention to all communication with potential buyers and only log in to trusted websites with the real URL to complete transactions. If you fall for this scam, take action as soon as you realize it because your money and identity can be compromised almost immediately.
How to Beat The Craigslist PayPal Scam
If the buyer ever sends you a link to sign up for PayPal, do not click the link. If you decide to use PayPal for payment, open a new browser window instead and type https://www.paypal.com. That is the real PayPal website, and you can safely sign up there if you need to.
When in doubt, you can log into PayPal and view the Resolution Center for any notifications coming from them.
To beat this scam:
- Do not click the “PayPal” link that the buyer sends you or you receive via email.
- If you click the link, do not enter any information there—close the browser window.
- Visit https://www.paypal.com to sign up or log in if you need to.
- Note: secure websites always start with https://
- When in doubt, sell items in person only and for cash.
If you think you've been scammed and believe your accounts and information have been compromised, it's important to act quickly to keep your money and identity safe.
PayPal has Seller Protection, but it does not apply to items picked up in person. If you’re selling an item to someone locally who will pick it up in person, it’s best not to use PayPal for payment.
Have You Fallen For The Craigslist PayPal Scam?
If you fall for this Craigslist PayPal scam, you're not alone. You can do some things to protect your accounts and money, but you must act quickly.
Change Your PayPal Password Immediately
If you already have a PayPal account, log in to https://www.paypal.com immediately and change your password as soon as you think you might be a victim of a scam. This will keep the scammers from gaining access to your PayPal account and, subsequently, your money.
Enable Two-Factor Authentication on Your PayPal Account
For added safety, set up two-factor authentication (2FA) on your PayPal account if it’s not already activated. 2FA is an extra layer of security that will make it harder for scammers to access your personal information. It means that each time you log in to PayPal, you will have to enter an additional code sent to your phone and your password.
To set up 2FA on your PayPal account, follow these steps:
- Log in to https://www.paypal.com using your existing username and password.
- Click or tap on “Settings”—it may look like a “gear” symbol—then click or tap on “Security” in the main navigation near the top of the page.
- Click or tap “Set Up” on the “2-step verification” option.
- If you want your code to come through a text message, select “Text me a code” and then click or tap “Set it up.”
- Add or verify the correct phone number so that you will receive the text messages.
- Click or tap “Next” to confirm that you are the real owner of your PayPal account by confirming the code texted to your smartphone.
- Click or tap “Done” to complete the process.
Now you will receive a text message with a new code every time you log in to your PayPal account. Because only you have your phone, a scammer will not be able to log in to your PayPal account without the code, even if he or she has your PayPal username and password.
Report the Scam to PayPal
Report any problems directly to PayPal. It’s important to let them know of any scams right away so they can help protect your information. They will likely ask you to change your password if you haven’t already done this.
Report the Craigslist PayPal Scam to Your Bank
Call or email your bank right away and let them know that you've fallen victim to the Craigslist PayPal scam. Forward any emails from the scammer without making any changes. If you act quickly enough, the bank may credit any money taken by the scammers back to your account. This, of course, depends on your bank or financial institution’s protection policy.
Report the Scam to Craigslist
Craigslist scams can be reported directly to Craigslist by using their online contact form. You can also flag the original post if it's still published by clicking on the flag at the top of the post.