Small page lists a few common PayPal scams and how they work, quite short but worth reading. We also mirrored it.
Intangible Item Paypal Scam!
PayPal Scams are notorious for hurting people financially. There are multiple PayPal Scams out there; most of which have been used for years now, yet PayPal still refuses to take action.
The first one is the intangible item scam. A user will sell an intangible item to a buyer. Intangible items can be accounts, services, software, or anything that you can not touch or feel. The buyer will pay for the item and never receive anything in return. They will file a complaint with PayPal and will lose the case and their money. PayPal does not protect buyers from buying virtual accounts. So before you decide to buy anything virtual, verify your buyer. Google their credentials and see what people have to say about him or her.
If you have been a victim of this scam and you have paid with your bank account or Credit Card, their is a way to get your money back, call your credit card provider and tell them to stop the payment. This should solve your problem. Do not abuse this, if you have been provided a service and you stop the payment, you CAN be taken to court and will be issued a huge fine.
False Address Paypal Scam!
Another PayPal Scam is the ” Send the Item to Somewhere else ” Scam. This involves you being the seller. The buyer will tell you to send the item somewhere else that is not his or her confirmed PayPal Address, first of all you should avoid selling to people who do not have a confirmed Address, but if you do, never send to a different address on their request. As soon as you send the item they will file a complaint stating that they never received the item and your tracking number is useless because you sent it somewhere else. This scam is usually done through eBay. There are also chances that you are dealing with a stolen PayPal. One huge suggestion is never send to third-world countries, there are no laws in these regions and you will not be protected by the law.
Don’t send to unconfirmed addresses or third-world countries. If you’ve been a victim to this scam there is little that can be done, you can try to call the Post-Office and stop the package, if it hasn’t arrived to its location. Other than that there is little that can be done.
Mystery Item Paypal/Ebay Scam!
One less common scam is the Mystery Item scam where a user will sell virtual envelopes and promise that 1 of them has a prize such as a ps3, Xbox 360, etc. The scammer will sell as many envelopes as he can and will keep doing this until the auction is over or until he has sold all of them. He will than make another eBay account and this new account will be winner. The losses of this scam are small, unless you buy many envelopes. Another technique they will use is, they will list over 1000 Envelopes and won’t start the raffle until all of them are sold. Once all of them are sold, chances are over 45 Days will pass for most of them and they can not file a chargeback, leaving the scammer with hundreds of dollars.
Never ever participate in Mystery Auctions. If you have and bought many envelopes, kindly ask the seller to refund you, because usually these scammers aren’t as bad and will to refund you, instead of taking the bad feedback.
Shipment Is Not as Described!
PayPal Scams don’t necessary have to use eBay, one common scam uses auction sites such as Ioffer.com or any other ecommerce site, that accept PayPal. The seller will sell any item and send a completely different item. Once the buyer receives the item, they will start a dispute claiming that they received a different item. PayPal will award the seller the money, because PayPal does not protect any selling done on any other site besides eBay. It will protect you if you have not received the item, but if the item is not what was described, you will be not protected.
Avoid buying from unknown sites that have zero to little reputation. Reputation is key when it comes to buying. If you have already been sent an item and it is not what was described, negotiate with the seller and try to work something out.