Lately, we have been getting about 4 fraud transactions in Paypal. This is actually causing pain to us because we already sent out the items.

What I would like to know, is that, do these people have access to the paypal email account? Because we send the digital item to the Paypal email account.

I am wondering if these people who hack the paypal account would have access to the owner's paypal email account as well.

You should voice verify all orders. Fraudsters almost never use their own phone numbers.

--Tina

Tina, I don't think hes talking about hosting (becuase if he was, he could always close the shared account / derack the server if dedicated), and for virtual item sales (online game stuff, ect) you generally don't bother with a phone call.

I could be way off, but for some thats not very fesible (especially if 4 were fraud, that means he must getting a very high volume of sales)

I am wondering if these people who hack the paypal account would have access to the owner's paypal email account as well.

Sometimes yes, sometimes no. They may have added their own e-mail to the PayPal account after gaining access to it as well. Or it might not be a stolen account, but a brand new PayPal account funded with a stolen credit card or bank info.

So far we received 4 frauds out of 25. But I have a feeling there are more coming, because I read from other places that Paypal will reverse your transaction even 1 year later! This is so crazy.

I know what you mean hostlec. We have been getting few fraud orders lately. Just check all the details properly. As AH-Tina said, voice verification is a good way to stop fraud.

If you are suppying digital goods put a note on your order form that says the items will be delivered (or instructions for download given) within 24 hours. This will give you some time to vet each order. You can also tell your customers that they will receive a code by phone which is required to get the item. make sure the number you get is a fixed line and check the area code against address.

I had this they refunded $200 out of my account, Bastards lol

So far we received 4 frauds out of 25. But I have a feeling there are more coming, because I read from other places that Paypal will reverse your transaction even 1 year later! This is so crazy.

Banks usually let their credit card holders perform chargebacks up to 6 months after the transaction. Since PayPal allows its users to fund payments by credit card, it can get those chargebacks up to 6 months later and has to pass those on to the account that got paid with those funds that PayPal will lose. PayPal will dispute the chargeback on your behalf, and will ask for any documentation you can provide that will help, but yes, you can have transactions reversed long after they happen.

This isn't just a PayPal "problem".. it's a reality for anyone accepting credit cards.

You should voice verify all orders. Fraudsters almost never use their own phone numbers.

--Tina
I would suggest using the MaxMind Telephone Verification program. It has helped us with PayPal fraud by almost 50%.

I know it's not necessary, but another good way to protect yourself is to make sure all addresses are PayPal varified. This protects you as a merchant.