Paypal Policy Enables Fraud

[inkkognito]

I'm not sure if this should go here or on Community, but I'll start here since I know a lot of you use Ebay to rack up some extra $$ for Disney and probably use Paypal too. But actually it's of interest to ANYONE with an email address:

Someone opened a Paypal account using my business email address. Now Paypal refuses to remove my address from the account. Their reason is that the other person could have had my email address at one time. That is not possible, because it is a business address based on my initials. My employer does not recycle addresses.

On April 29, at around 10:45 a.m. Eastern time, A supervisor named Billie at Paypal told me, "It is not our policy to verify email addresses." I said, "Are you telling me I can open a Paypal account with anyone else's address any time I want and they will be stuck with a perpetual Paypal account?" She said, "That would be fraud." I pointed out that she was basically saying the other person committed fraud if I use her logic. She still refused to do anything about it. By Paypal's definition, my email address was used fraudulently, yet they will not take any action.

Now I am stuck with a perpetual account in someone else's name that I cannot even access. Billie said it is not Paypal's responsibility to verify the information; pretty sad to hear that in this day and age of fraud. Don't get anyone ticked off at you or they can open an account in your email address and you'll take it to the grave with you.

Please let others know about this loophole; ANYONE could become an involuntary account holder at the whim of anyone who knows their email address.

Barb

 

[my3kids]

If it is your email address are you getting transaction information?

 

[tinaluis]

I've really been shying away from Paypal because of all the horror stories I've read on www.paypalsucks.com. You would think they'd be more concerned about what seems like a serious issue. I think they're making so much $$$ they don't care.

 

[inkkognito]

I just get emails for the statements, and of course I don't have a password to go in and look at them. When I use "forgot password," I get a screen instructing me to call.

I suspect that the account is not being used, but of course Paypal will neither confirm or deny that. I find that to be quite scary! Since I can't close it or remove any association with it, this person could do something fraudulent in the future and my business email would be involved.

Barb

 

[my3kids]

I was going to suggest doing a forgot password thing, then close the account. Oh well. That is really weird. Did they just do it? Did someone do it KNOWING that was your email address hoping that clients would pay for trips via PayPal then they would steal the money? I wonder if this is a new "technique" of criminals....setting up accounts of businesses who would routinely accept large sums of money hoping to intercept a few?

 

[inkkognito]

I think it's been a few months because I reported it via Paypal's online form the first time I got an email about the statement. I figured it was taken care of, but now I got another one. And obviously there is something hinky about the account, since I am instructed to call when I try to get the password. But the email address isn't related to the business I own; it's related to my "day job" employer (a manufacturer), so it's not an address where I would receive money or that should ever be linked to Paypal for any reason. Weird!
Barb

 

[buzz2400]

just a suggestion but if you still have the printout of the the statement, you might be able to find out the password by calling and saying that you don't have any of the personal information but you have a statement that shows last transaction. Sometimes when you can verify something like that the company will give you access.

 

[CajunDixie]

I think I'd call them and tell them to either close the account and identify the account holder by their ISP number or you'll be contacting your attorney. If somehow the person using the PayPal account gets access to your SS# or bank account #s they can really mess up your credit report by stealing your identity. Is it possible this is someone that you work with that has initials/an email similiar to yours? Or it could be someone that has access to your info at your day job that is trying to steal your identity. Many office personnel have access to your SS# and address and that's all thats really needed to open a credit card account.

 

[CajunDixie]

Double Post

 

[inkkognito]

I don't have access to the statement to print it, just an email that says it is ready for viewing. There was a name on the auto-responder email that Payal sent when I tried to get the password, but it wasn't even close to mine. I think threatening them with legal action will be the only possible way to get this taken care of. It worries me that someone used the address; my husband went through identity theft a few years back, so I know firsthand what a horror it is. I am still in shock that the manager I spoke to said, "Yes, you could open accounts with other people's email addresses and we would not remove them, but that would be fraud." Duh! She admits it's fraud and says they won't do anything about it in the same breath. Seems like they're just asking for another lawsuit; you'd think they would have learned.
Barb

 

[Dagny]

Barb: I doubt the account is being used, it was probably a typo or something. Can you just email them and ask them to close the account? Since it would be coming from your email addres, not sure why they would deny the request. I certainly understand how frustrated you must be - I would be too !

 

[dreams91]

There are a lot of problems with paypal. I can't add my husband to my account with his credit card. It has to be a credit card in my name. Another problem is that I wanted to open up an account just for him, but they won't let me add our joint bank account to his paypal account, because the bank account is already being used by my account.

 

[mking624]

Cherie, in a way that kind of makes sense as they are trying to protect against scammers. It's not uncommon for hackers to get in with stolen accounts and them claim to be the joint owner or something.

 

[NewEnglandDisney]

PayPal is a double-edged sword.

I have found the best way to deal with it is to get their PayPal debit card, and immediately withdraw/transfer the funds when they arrive.

It is very convenient (it's the only form of payment I take for auctions because I'm not waiting weeks for a money order that may never arrive) but it does have its risks.

People can turn around payments very easily and they are deducted from your account without your consent. Unless you pay for delivery confirmation on every single item you sell PayPal considers the sale "unverified" and you loose.

I use them, but with caution. It's my extra money for the trip (special meals, etc) and I always withdraw the cash before I go. PayPal charges you $1 to withdraw with their ATM card, and since I have a no-fee credit union ATM at work I withdraw it there. Using the bank transfer is quicker than they state (usually only takes about 3 days instead of the 5-6 they say) but again, your payment is in limbo and if some disgruntled buyer chargesback or files a fraud claim against you (even if it has no basis in reality) PayPal automatically will freeze the funds.

I've been to that paypalsucks website, and many of the stories, if you read between the lines, are people who were trying to go outside of the rules anyway. That's not saying many people have VERY valid complaints, it's just that some people make out that they were wronged when they weren't which just makes those VALID complaints less convincing.

Just be careful. I use PayPal's USPS service to send all my auction items now (I only do priority mail for all my auctions because of it's speed and reliability) which includes FREE delivery confirmation and tracking if you pay online with PayPal. The label prints out my printer (on plain paper) and I affix it to the envelope with tape. Has worked for me so far, and the delivery confirmation assures that people won't try to scam you by saying they never got it.

Good luck!

N.E.D.