In 2025, PayPal users face increasingly sophisticated threats from fraudsters who have honed their tactics. Whether it's a fake invoice or a phishing email designed to steal your credentials, the dangers are real. This guide arms you with six crucial strategies to outsmart scammers, spot the red flags, and keep your money and identity secure every time you transact online. Let’s navigate these digital waters with confidence and vigilance.
Identifying Phishing Emails
Phishing emails keep getting smarter, but you don’t have to be a cybersecurity expert to spot them. These scams often copy the look and feel of real PayPal messages, right down to the logo and formatting. It’s unsettling how real they can appear—until you look closer.
Common Signs of PayPal Phishing Emails
Generic Greetings: Real PayPal emails address you by your full name. If you see a “Dear Customer” or just your email address, consider it a red flag.
Poor Grammar and Spelling: Typos, awkward sentences, or weird phrasing often slip through in scam emails. PayPal’s official messages are carefully written and proofread.
Suspicious Sender Addresses: Always check the sender’s email. A legitimate PayPal message comes from an official PayPal domain (like @paypal.com). If you spot odd spellings or extra characters, don’t trust it.
Unexpected Attachments or Links: Hover over any links (but don’t click!). If the URL looks strange or doesn’t start with https://www.paypal.com/, treat it as suspicious.
What To Do If You Suspect a Phishing Email
Never click links or download attachments from emails you weren’t expecting.
Log in to your PayPal account directly through the official website—not through a link in an email.
If in doubt, forward the email to [email protected] for verification.
Phishing is all about tricking you into handing over your credentials. Staying alert to these telltale signs is your first line of defense.
Spotting Fake Invoices
Fake PayPal invoices are everywhere, and scammers are getting better at making them look real. Spotting them can save you a serious headache—and potentially your bank balance.
How Fake Invoices Work
Scammers send invoices that look like they're from PayPal. The email address might even use PayPal’s name, and the invoice might reference a recent transaction or urgent payment. Don’t let the branding fool you.
Red Flags to Watch For
Mismatch Between Email and Account: Real PayPal invoices will always show up in your PayPal account. If you get an email about an invoice, log in to PayPal directly (don’t click the link in the email) to check if it’s actually there.
Seller’s Note Discrepancies: Scammers often use generic, awkward, or oddly urgent notes in the invoice. Watch for strange grammar, requests for immediate action, or threats of account suspension.
Suspicious Contact Numbers: Some fake invoices include a phone number, urging you to call and “resolve” the issue. Always be skeptical of these numbers. If you must call, use PayPal’s official contact info from their website.
Odd Payment Requests: If the invoice asks for payment via cryptocurrency or gift cards, it’s a scam. PayPal doesn’t process payments that way.
Verifying Real Invoices
Here’s the bottom line: Legitimate PayPal invoices always appear in your PayPal account dashboard. If you can’t see the invoice after logging in, it’s fake. Don’t trust email links or attachments.
Extra Protection
Relying solely on your inbox can leave you exposed. Tools like Cloaked help keep your primary email address hidden, reducing your risk of receiving these phishing invoices in the first place. Using aliases for online transactions adds another layer of defense, so if one alias gets spammed or scammed, your real contact info stays safe.
Being alert and double-checking every invoice can make all the difference. Trust your gut, and when in doubt, always go straight to the source.
Handling 'Account Locked' Messages
Getting an email that says your PayPal account is locked can jolt you. Scammers count on that knee-jerk reaction. These messages are designed to trigger panic, pushing you to act fast—exactly what fraudsters want.
Recognizing the Scam
These emails almost always share a few things in common:
Urgent Subject Lines: “Your PayPal Account Is Locked” or “Immediate Action Required.”
Suspicious Links: The email directs you to a website that looks like PayPal, but it’s a clever fake.
Requests for Personal Info: You’re asked to enter your password, credit card details, or even your Social Security number.
It's easy to get tripped up. The fake sites mimic PayPal’s branding so well, most people don’t notice until it’s too late.
How the Scam Works
Here’s the usual playbook:
1. Email arrives: It claims your account is locked for security reasons.
2. Fake link: You’re told to “log in” to verify your identity.
3. Credential theft: Entering your info sends it straight to the scammer, not PayPal.
Scammers might even follow up with phone calls or texts if you take the bait.
What To Do If You Get One
Don’t click links in the email. Go directly to PayPal’s official website by typing the address into your browser.
Check for telltale signs: Poor grammar, odd sender addresses, and generic greetings like “Dear Customer.”
Never share sensitive information unless you’re sure you’re on the real PayPal site.
If you’re ever unsure, open a new tab and log in to your PayPal account as you normally would. If your account’s really locked, you’ll see a notification after signing in.
Quick Tips for Extra Security
Enable two-factor authentication on your PayPal account.
Consider privacy tools like Cloaked, which help keep your real email and personal details private. Cloaked allows you to generate secure aliases for your email and passwords, so even if a scam email slips through, your real details stay safe.
Scam emails thrive on urgency and confusion. Stay calm, double-check the source, and always trust your instincts. If something feels off, it probably is.
Understanding PayPal Security Checks
PayPal is a trusted name, but it’s also a magnet for scammers looking to exploit confusion about how its security works. Knowing what a genuine PayPal security check looks like can be the difference between keeping your money safe and falling for a phishing trap.
What Legitimate PayPal Security Checks Look Like
PayPal has set protocols to protect its users and reduce fraud. Here’s what you’ll actually encounter with real PayPal security checks:
Account Login Verification: If you sign in from a new device or location, PayPal may prompt you for additional verification. This often includes a code sent to your registered email or phone number.
Transaction Verification: For suspicious transactions, PayPal might temporarily limit your account and ask you to confirm your identity or recent activity through your official PayPal dashboard.
Security Alerts: Legitimate alerts are always accessible by logging in directly to PayPal.com or the official app, never through suspicious links.
What PayPal Will Never Do
There are clear red flags that signal a scam. PayPal will never:
Ask for your password, full card details, or Social Security number through email or text.
Send links asking you to log in via a non-PayPal domain.
Request sensitive personal information outside their secure website or app.
If you get an email claiming to be from PayPal that asks for personal information or urges you to click a strange link, it’s almost certainly a scam. Always log in independently to check for real notifications.
How to Spot the Difference
It’s surprisingly easy to get tricked if you’re not on guard. Here’s how to keep your wits about you:
Check the Sender: Genuine PayPal emails come from @paypal.com. Anything else? Trash it.
Never Click Suspicious Links: Hover over links to see the real destination. If it’s not PayPal’s official website, don’t touch it.
Go Direct: Always type “paypal.com” directly into your browser to check your account. Never trust a link sent in an unsolicited message.
Look for Personalization: PayPal uses your real name in communications, not generic greetings like “Dear Customer.”
Real-World Wisdom
Anecdotally, many people have received emails that look official but are really just scams trying to catch them off guard. One trick is to look for spelling errors or urgent language—classic signs of phishing.
Where Cloaked Comes In
If you’re tired of phishing attempts and want to keep your PayPal and other accounts safe, using a tool like Cloaked can help. Cloaked lets you generate unique, private email addresses and phone numbers for every online account. This means if a phishing email lands in your inbox, you’ll know instantly if it didn’t come to your “real” PayPal-linked email—making it much easier to spot fraud.
PayPal security checks are designed to protect you, but scams are always evolving. Stay alert, know what to expect from real security protocols, and use privacy tools to keep your information out of scammers’ hands.
Avoiding Refund Scams
Refund scams on PayPal prey on quick reactions and blurred details. Scammers often try to confuse you with stories of accidental overpayments, then pressure you to return the extra funds. Their tactics are slick, but with a clear head and a bit of know-how, you can sidestep these traps.
Common Signs of a Refund Scam
Unexpected Overpayment: You receive more money than expected, usually with a request to send the difference back.
Urgency and Pressure: The scammer insists the refund must be processed right away, often appealing to your sense of fairness or fear of penalty.
Unusual Payment Methods: They may ask you to return the funds via wire transfer, gift cards, or other means outside PayPal.
How to Respond to Suspicious Refund Requests
Pause and Double-Check
Never rush. Scammers count on you acting before thinking. Review the transaction details in your PayPal account—do not rely on email notifications alone, as these can be faked.
Contact PayPal Directly
If something feels off, reach out to PayPal using their official channels. Do not use contact details provided in suspicious messages. Instead, log in to your account and use the contact information listed on PayPal’s website.
Use PayPal’s Resolution Center
Any disputes or refund requests should go through PayPal’s Resolution Center. This feature is designed to keep your communication and transactions secure and documented.
Extra Layer of Protection
Staying alert is key, but adding privacy tools like Cloaked can also help. By creating unique email addresses and phone numbers for each transaction, Cloaked makes it harder for scammers to follow up or target you again after an attempt. This puts more control in your hands and limits the personal info you share, reducing risk from all angles.
Quick Tips to Remember
Never send refunds or payments outside the PayPal platform.
Ignore urgent refund requests that don't match your transaction history.
Regularly check your account activity for anything unusual.
When in doubt, verify with PayPal—not the person requesting the refund.
A little caution goes a long way. Scammers may be persistent, but a few smart steps can keep your money safe and your peace of mind intact.
Recognizing General Scam Warning Signs
PayPal scams can catch anyone off guard. Scammers know how to push your buttons—rushing you, confusing you, or dangling fake rewards. Spotting red flags early can save you a world of trouble. Here’s what you should watch out for:
Common Red Flags in PayPal Scams
1. Messages That Create Urgency
“Act now or your account will be suspended!”
“You’ve won a prize—claim it within 30 minutes!”
Scammers want you to panic and click before you think. Real PayPal emails rarely, if ever, threaten immediate consequences.
2. Suspicious Email Addresses and URLs
Look for odd senders like “[email protected]” (notice the subtle typo?).
Hover over links—fake ones often look close, but not quite right. PayPal’s official domain is always “paypal.com.”
3. Requests for Personal or Financial Information
PayPal never asks for your password, full credit card number, or Social Security Number via email or text.
If you’re being asked to “verify” these details, it’s a scam.
4. Poor Spelling, Grammar, or Formatting
Professional companies proofread their communications.
Sloppy writing and weird layouts are classic scam giveaways.
5. Offers That Seem Too Good to Be True
“You’ve received a payment—click here to accept.”
Promises of rewards, refunds, or job offers that ask for sensitive info up front are almost always traps.
Enable two-factor authentication on your PayPal account for extra security.
Antivirus and anti-malware software can help block phishing sites and dangerous attachments.
If you’re tired of worrying about your personal information leaking, services like Cloaked can help. Cloaked lets you generate temporary emails and phone numbers, so you can use PayPal without revealing your real contact details to every seller or website. If one of those aliases gets compromised, you just delete it—no need to overhaul your entire digital life.
Quick Checklist: Spotting a PayPal Scam
Is the message trying to rush you?
Do the sender’s email or links look odd?
Are you being asked for sensitive info?
Is the language sloppy or unprofessional?
Are you being offered something that sounds too good?
Stay alert. The most successful scams prey on our instincts to trust and act fast. Take a breath, double-check, and don’t be afraid to walk away from anything that feels off.
Cloaked FAQs Accordion
Frequently Asked Questions
Phishing emails often mimic real PayPal messages but reveal red flags such as generic greetings (e.g., 'Dear Customer' instead of your full name), poor grammar and spelling errors, suspicious sender addresses that don’t come from an official PayPal domain, and unexpected attachments or hyperlinks that may lead to fraudulent sites.
If you suspect a phishing email, do not click on any links or download attachments. Instead, open your browser and log in directly to your PayPal account by typing paypal.com. Additionally, if you are in doubt, forward the suspicious email to [email protected] for verification.
Legitimate PayPal invoices will appear only in your PayPal account dashboard. If you receive an email about an invoice, don’t trust the email link—log in directly to your account to check its presence. Also, be cautious of invoices that include odd seller notes, mismatched contact numbers, or request unusual payment methods such as cryptocurrency or gift cards.
Enhance your security by enabling two-factor authentication and using a strong, unique password for your PayPal account. Additionally, consider using privacy tools like Cloaked that hide your primary email address by generating secure aliases, so that even if a phishing attempt lands in your inbox, your real contact details are protected.
Common red flags include urgent messages that create panic, sender email addresses that don't end with '@paypal.com', generic or non-personalized greetings, poor spelling and grammar in the email content, and requests for personal or financial information via email or text. If any of these signs are present, it's best to verify by logging in directly to your PayPal account.
At Cloaked, we believe the best way to protect your personal information is to keep it private before it ever gets out. That’s why we help you remove your data from people-search sites that expose your home address, phone number, SSN, and other personal details. And to keep your info private going forward, Cloaked lets you create unique, secure emails and phone numbers with one click - so you sign up for new experiences without giving away your real info. With Cloaked, your privacy isn’t a setting - it’s the default. Take back control of your personal data with thousands of Cloaked users.
*Disclaimer: You agree not to use any aspect of the Cloaked Services for FCRA purposes.
