What are ‘Friends and Family’ payment scams on PayPal?

Many scammers now ask for payments to be sent through peer-to-peer (P2P) payment services.

In many locations, PayPal offers a ‘Friends and Family’ payment option for the everyday exchange of money between you and your friends and family. For example, when you send money as a gift, split a lunch bill, pay your share of living expenses, or something similar. PayPal also offers a ‘Goods and Services’ payment option for the purchase of goods and services from sellers you may not know. Goods and Services payments receive PayPal Purchase Protection.

Purchase scams

If a seller is encouraging you to send a ‘Friends and Family’ payment when you’re buying a good or service, you should refuse. You could be dealing with a scammer who knows that your payment won’t be covered by our Purchase Protection if it’s a ‘Friends and Family’ payment.

Imposter scams

Be wary of actors claiming to be from government agencies or reputable companies. They may claim there’s a problem with your account or that you owe money. To resolve this issue, they’ll ask you to send a payment and/or provide personal info.

Romance scams

Fake profiles on dating applications or social media platforms that establish romantic interest may be attempting to gain your trust and confidence. Subsequently, they fabricate a narrative and solicit financial assistance. It is crucial to distinguish between these impersonations and genuine individuals.

Extortion/blackmail scams

Exercise caution against individuals who impersonate you and assert the possession of compromising images or videos, threatening to disseminate them unless you comply with their demands. Refrain from making financial payments to the blackmailer or providing them with further intimate content.

Cease all communication with the blackmailer immediately. Block their access to your communication channels. If applicable, report them to the social media platform where they are active. Capture screenshots of all communication and the accounts involved as evidence. Additionally, save screenshots and URLs of any content shared online.

Individuals affected by this type of conduct may experience a range of emotional distress, including shame, anxiety, and isolation. Consequently, they may be hesitant to report the incident or seek support. In many instances, such conduct constitutes a criminal offense, and there are available resources to assist victims. If feasible, confide in trusted family members or friends. If you have been a victim of sextortion, it is imperative that you report the incident to your local law enforcement authorities.

Investment and cryptocurrency scams

Exercise caution when considering requests that appear excessively favorable, particularly those pertaining to investments and cryptocurrency. Promises of substantial returns and negligible risk may indicate a potential deception. Be vigilant against intricate investment strategies and unlicensed advisors. Additionally, please refer to our Acceptable Use Policy for further guidance.

Property scams

Scammers have been known to create fraudulent rental listings and persuade victims to remit funds as a deposit in order to secure the property. Please be advised that real estate, including residential and rental properties, is not covered by our Purchase Protection.