Watch out for the PayPal ‘1p’ deposit scam
Tali writes about scams and consumer rights for Which? delving into fraud, technology and consumer rights topics to keep readers safe and empowered.
Which? is warning PayPal users to be wary of a genuine PayPal email that scammers are manipulating to lure you in to a phone scam.
The scammer first deposits 1p into your PayPal account, which triggers a genuine email from PayPal about the deposit. This is then followed up with a phone call, but this time it's the scammer on the other end of the line.
This isn't the first time scammers have used PayPal to send emails from the brand’s official email address, service@paypal.com. It's a sneaky tactic that could convince you that the email and phone call are genuine.
Below, we explain how this scam works and what to do if you receive one of these emails or calls.
PayPal 1p scam email
Scammers use a non-existent or hacked business on PayPal to send 1p to your PayPal account.
The ‘business’ sending the money includes a note with the deposit, which says that you received the email because your ‘PayPal account processed a payout by small deposit confirmation’.
This email suggests that more money is on the way to you and that the small amount was sent to confirm that your account is live.
This email looks quite convincing. It asks you to call a number if you didn’t authorise this to ‘immediately secure your account and request a refund.’
Calling the number puts you through to someone in on the scam who will talk you into giving your personal and financial information.
There are variations of this scam. In one example Which? saw, the recipient was sent a small amount of money in the currency of the Philippines and given a number to call that's not associated with PayPal.
Some recipients warned on social media that their PayPal accounts had been hacked after receiving emails like this, although it's unclear how.
Others have said that after calling the number, they were asked to download remote software onto their device as part of a remote access scam, in which fraudsters ask you to download software that gives them access to your device.
5 quick steps to spot scam emails
- Double-check the contact details – are you asked to call, email or follow a link that isn't associated with the brand it claims to be from?
- Have you been asked for personal or financial information?
- Check for poor spelling, grammar and general presentation.
- Are you being rushed or pressured?
- Is it trying hard to be 'official'?
What to do if you receive this email?
If you receive this email, don’t call the number or reply to the email. You should log into your PayPal account and make sure your password is updated to one that is strong and unique. You should also ensure that two-factor authentication is enabled where possible.
Which? contacted PayPal about this email, and it told us that it's aware of this scam and that the phone number isn't associated with PayPal.
It said: 'We do not tolerate fraud and are committed to protecting customers from scams like phishing. We encourage people to stay vigilant – scammers often create urgency or use fake support numbers to steal information. PayPal will never demand urgent action or include phone numbers in payment messages.
'Always log in directly to the official app or website to review activity and report suspicious emails to phishing@paypal.com, then delete them.’
'If you've lost money or spot an unauthorised transaction on your account, you should contact your bank immediately using the phone number on the back of your card.
Scams should also be reported to Report Fraud, or by calling the police on 101 if you live in Scotland.
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