Paypal Is Being Used In Popular Nigerian 419 Scam
A new variant of popular Nigerian 419 scam is possible via Paypal, according to report by Inquirer. The 419 scam is named after the relevant section of the Nigerian Criminal Code and the premise is always the same. Somebody offers to pay money into your account and give you a cut when you send it back. In truth the whole thing is money laundering but this latest twist – using Paypal – is significant because, on the surface, it looks like there’s no catch.
Instead of receiving the offer via email (as is normally the case), this person was approached over a Skype chat session. The perpetuator wants to transfer funds out a Paypal account and convert them back into US dollars. All the victim needed to do was check his Paypal account and when the money arrived, send a significantly lower amount back via Western Union.
Due to Paypal’s payment reversal policy, there is a loophole which enables the scam to work. As the payment would be classified as ’services’ rather than goods, there would be no proof that the the victim – who becomes the ‘vendor’ – provided any goods. So the ‘buyer’ – in this case the scammer – gets the money back. In the meantime, the vendor has sent the dollars via Western Union and then finds himself stuck with no means of recourse.
Both Western Union and Paypal can be blamed for making this scam work. Western Union makes it too easy to send and receive money anonymously while Paypal’s dispute resolution procedure system is a crude automated system.
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March 9th, 2009 at 10:10 am
We decided to post an old ring we had and didn’t want to Craig’s list - out first online sales attempt and we got several very quick responses (yellow flag). They all wanted to buy “the item” (yellow flag) sight unseen (yellow flag) using PayPal or AlertPay and would include $100 for shipping and handling. All they needed was my name and the e-mail address I used to set up the account. I checked out PayPal and set up the account and then sent my information to the first buyer. I very quickly received a very official looking message addressed from service@paypal.com telling me the money had been deposited and to ship the item to an address in Nigeria (Red Flag). I did a quick Google search and found many people reporting a similar scam. Then I checked my PayPal account and found the balance to be $0. I’m glad I checked before just shipping the item and I’m sure others wish they had.
March 10th, 2010 at 12:00 am
I had my canon DSLR camera posted on marketplace at facebook for sale. A lady sends me an e-mail saying she will buy it. She told me if I could end the auction and she would pay me through paypal. So, I closed the auction and gave him my paypal e-mail. She said that she was living in U.S. and the camera is for her grandson’s bithday present in Nigeria. Here is the e-mail:
hi
i am really interested in buying this item for my Grandson in west Africa as a Birthday gift and i will be offering you $3,250 including the shipping cost to west Africa kindly get back to me with your pay pal email address, so that i can send out the payment as soon as possible.
Thanks and Stay Bless
my reply :
my pay pal email address is the same as my gmail address :
xxxxxxxxxx@gmail.com
After that, I receive email from paypal :
PayPal Mar 08, 2010 : PDT
Transaction ID:Jan/16/2010 3D228926MW045920S
Hello xxxxxxxxxx xxx xxxxxx,
You have an instant payment of $3,250.00 USD from JENNIFER COLE (jennifercole_0@yahoo.com,)
Thanks for using PayPal. To see all the transaction details, log in to your PayPal account.
It may take a few hours for this transaction to appear in your account.
—————————————————–
Seller
xxxxxxxxxxxxxxxxxx
xxxxxxxxxxxxxx@gmail.com
Note to seller xxxxxxxxxxxxxxxxxxx
You have to provide to us the shipment tracking number so that your funds can reflect in your account as soon as possible.
.
Shipping address - confirmed
Name;………Abraham Ekpo
Address:…..N0,33 Olayinka Street Ijeshatedo
City:…………Surulere
State:………..Lagos
Country:……..Nigeria
Zipcode:……..23401
Shipping details
USPS Global Express Mail United States Postal Service
Description Unit price Qty Amount
*Canon EOS 500D/Kiss X3 for MYR*
Item# Not Applicable $3,250.00 USD
$3,250.00 USD
Shipping and handling $00.00 USD
Insurance - required $00.00 USD
Total
$3,250.00 USD
Payment
$3,250.00 USD
But something fishy about this is the seller is a white lady buying for her grandson, Abraham Ekpo ? Try to add her as friend in facebook, but no reply and when checking the trx ID, it was on 16 Jan 2010.
On top of that, I only sell the camera for MYR2900, but she paid USD3250. It was nearly RM10,888. I was shocked and excited, but to be safe I checked first at google and find out that it was a Nigerian scammer.Thank God I did’nt proceed shipping after read all the stories.
June 16th, 2010 at 8:20 pm
I got the same email from nigeria heres a copy
June 24th, 2010 at 12:17 pm
I tried selling a camera on ebay and I had 10 more hrs to get when I received an e-mail from a lady claiming she lives in the UK. She wanted to buy the camera for $1,100 and pay $120.00 for shipping. She also said she would send me the payment thru Pay pal.I was selling the camera for 999.00. So I though that was a bit strange but ok. She also told me to take it off of the auction so she could the item, since I only had a few more hrs I just let it expire and then I then e-mailed her and told her to go ahead and send the payment via my pay pal account. I then received a payment verification thru payapl from @service@paypal.com so I thought. Something didn’t feel right, so I checked my account at Paypal and there was nothing pending so that’s when I knew it was a scam. I sent her/them a really nice e-mail letting them know that I know what they are doing and that I would turn everything over to the FBI. So I say be careful if it’s just too easy and definitely go with your gut feeling. Check your paypal account , because even if something doesn’t get released until shipment is sent they will have it pending on your account.