PayPal customers issued urgent ‘1p deposit’ scam warning – ‘we would never do this’ | Personal Finance | Finance

PayPal users have been warned about a sophisticated scam on the platform that’s easy to fall for. Which?, a leading consumer champion, is calling on Britons to be vigilant about the “1p” deposit scam, which begins with fraudsters posing as businesses and sending the tiny amount to your account. They have been known to do this by hacking an existing business or inventing a fake one.

When deposits are made, PayPal sends a genuine payment message in an email flagging the transaction. The scammer includes a note telling the victim that they received it because their account “processed a payout by small deposit confirmation”, Which? reports. This suggests that further funds will be sent and that the nominal fee was sent simply to confirm your account is active. Included in the note is official-looking guidance to call the provided number if you didn’t authorise the payment to “immediately secure your account and request a refund”.

But if you call the number, you’ll be put through to someone involved in the fraudulent operation, who will then try and dupe you into providing personal and financial information they can use to steal from you.

If you’re targeted, don’t reply to the email or call, and immediately update your password to something strong and enable two-factor authentication if you can, the website says.

If you’ve been targeted, you may already have personal information online, and reinforcing security will help prevent cybercriminals from hacking into your account.

The scam can come in various forms, with scam artists constantly coming up with new ways to try and bypass developing security measures, Which? says.

PayPal told the website it was aware of the scam and that the phone number isn’t associated with the company.

“We do not tolerate fraud and are committed to protecting customers from scams like phishing,” a spokesperson said.

“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.”

Which? has urged people to take precautions when doing their email admin, sharing various ways to spot a fake, including checking the contact details and whether they match the brand the scammers claim to be associated with.

You can find out more here.