A new scam is attracting attention: Criminals are using the “Pay without a PayPal account” function to trigger illegal payments via IBAN.
This is how the scam works
The scammers are taking advantage of a feature PayPal calls “guest payments.” Payments can be made without the payer having to have their own PayPal account. Instead, all you need is the IBAN of a bank account, as the North Rhine-Westphalia consumer advice center reports. While this function is actually intended for customers who do not have a PayPal account, it offers criminals the opportunity to use third-party IBANs without identity verification.
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The process is simple: The fraudsters enter the IBAN of a third party and use it to make payments. Since there is no verification, the actual account holders only notice the fraud when unauthorized debits appear on their account, according to the North Rhine-Westphalia Consumer Center. In some cases, those affected only become aware of reminders when the payment has been charged back.
Vulnerabilities in the security system
A key problem with this scam is the lack of verification when entering the IBAN during the guest payment process. In contrast to opening a regular PayPal account, where identity checks take place, guest payments only ask for the IBAN without ensuring that it actually belongs to the payer. This opens up the opportunity for criminals to misuse third-party account data for their own purposes.
Reactions from consumer advocates and banks
The North Rhine-Westphalia consumer advice center has drawn attention to this fraud and is calling on affected consumers to take immediate action if their claims are unjustified. This includes returning unauthorized direct debits to the bank and reporting them to the police. Those affected should also contact PayPal to report the incident and prevent possible further transactions.
Some banks have already responded to the problem by actively informing their customers about the risks of such fraud. Customers are advised to check their account statements regularly and only provide IBAN details to trustworthy merchants or service providers, it said.
Possible protection measures against PayPal scams
To protect themselves from the scam, consumers can take various measures. Regular checks of account statements are crucial in order to detect unauthorized debits at an early stage. If such a debit is discovered, consumers should have it reversed within eight weeks – this is the case SEPA-Direct debits possible without any problems.
In addition, personal banking information such as the IBAN should not be revealed unnecessarily, especially not on unsafe websites or in unsafe emails. Another measure is to set up notifications about account transactions. Many banks offer apps or SMS services that inform the account holder of every debit in real time.
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What responsibility does PayPal have?
PayPal has been criticized for this scam because the company has not yet sufficiently tightened security precautions for guest payments. While PayPal emphasizes that security measures and risk management are continually being improved, it is unclear what specific measures are planned to prevent this fraud scenario. Consumer advocates are demanding that PayPal overhaul its guest payment feature or introduce additional security checks. This could make misuse much more difficult and increase user trust in the platform.
D. Maier / editorial team finanzen.net
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