See Pricing Get Protection

Is PayPal Safe?

Expert analysis on PayPal security, scam prevention, and safe usage

Quick take on PayPal scams

PayPal is moderately safe to use. It offers strong buyer protection—but only when you choose “Goods and Services.” If you select “Friends and Family,” you lose all protection, and scammers exploit this. The Federal Trade Commission (FTC) reports PayPal accounts for 28% of payment app fraud complaints. Bottom line: Use PayPal’s buyer protection and never pay strangers as “Friends and Family.”

Get Your Free Data Breach Risk Report

See if your email address has been exposed in data breaches and learn how to protect yourself from scams.

Run a free email scan

PayPal scam statistics: recent data trends

PayPal generated the highest volume of payment app complaints, accounting for 28% of such complaints in 2023, with payment apps collectively seeing $210 million in scam losses according to FTC data. Fake invoice scams specifically target PayPal users through phishing emails that mimic official notices, contributing to rising imposter fraud. The CFPB emphasizes that Friends & Family payments offer zero consumer protections unlike Goods & Services transactions, leaving users vulnerable in disputes when payments are misclassified.

28%

Share of payment app complaints (2023, FTC)

$210M

Payment app scam losses in 2023 (FTC)

0%

Consumer protection for Friends & Family payments (CFPB)

GOLDEN RULE: For purchases, always use "Goods and Services" - never "Friends and Family"

PayPal red flags to watch for

  • Fake invoices or subscription bills.
    Phishing emails send real-looking charges to trick you into clicking "cancel"
  • Overpayment scams.
    A buyer sends too much, then asks for part back before their payment clears
  • Phishing emails.
    Spoofed "account frozen" notices linking to fake login pages
  • Friends & Family misuse.
    Scammers ask for this method to remove buyer protection
  • Off-platform seller scams.
    Fake sellers disappear after you pay for items listed in marketplaces

NEVER Send Money If:

  • Someone asks you to pay via "Friends and Family" for purchases - removes all buyer protection
  • You get invoices for subscriptions you never signed up for - don't click anything, log into PayPal separately
  • Someone sends you extra money then asks for a refund - their payment will bounce
  • You're buying from a third-party marketplace and the seller insists on digital payment only
  • Anyone you're dating online asks for PayPal payments - romance scammers love PayPal

Warning signs of PayPal scams

  • Account "holds" or freezes requiring payment to resolve (log in directly to check)
  • Fake emails with attachments or urgent calls for verification
  • Sellers avoiding Goods & Services to "save on fees" (always insist on it)

How to protect yourself from PayPal scams

  • Always choose "Goods and Services".
    For any purchase—never let sellers convince you otherwise for "lower fees"
  • Log into PayPal directly.
    Access paypal.com when you receive suspicious emails, never click email links
  • Enable two-step verification.
    Use unique passwords not shared with other accounts
  • Insist on PayPal buyer protection.
    For marketplace purchases, document all communications
  • Report suspicious invoices.
    Use PayPal's Resolution Center without calling any phone numbers listed
  • Review PayPal activity weekly.
    Set up automatic email alerts for all account activity
REMEMBER: PayPal Friends and Family payments are identical to cash—zero protection if something goes wrong.

Safety tips 101: Frequently asked questions

PayPal can be secure, but your protection depends on how you paid. "Goods & Services" may be eligible for Purchase Protection; "Friends & Family" is a common scam route because it typically isn't covered.

Big ones: phishing/impersonation emails, invoice/subscription tricks, account takeovers, and being pushed into Friends & Family payments. Treat unexpected PayPal messages as suspicious and log in directly (don't click).

Not directly just because you linked it—but if someone compromises your PayPal login (or your device/email) they can potentially misuse linked funding sources. Use 2FA, strong passwords, and keep your email secure because that's the real "master key."

Where to Report PayPal Fraud

FTC

Visit reportfraud.ftc.gov to report the scam. Provide as many details as possible about the interaction.

Phone: 1-877-FTC-HELP

Report to FTC

Your Bank

Contact your bank's fraud department immediately. Look for "Report fraud" link on your bank's website.
Tip: Call the number on the back of your card

PayPal Support

Report fraud through PayPal Resolution Center

Contact PayPal

Government Resources

Related News & Articles

Related Topics

digital-payments buyer-protection fake-invoices

Get Your Free Data Breach Risk Report

See if your email address has been exposed in data breaches and learn how to protect yourself from scams.

Run a free email scan