Many use PayPal for online transactions because it is so much safer than giving an unknown retailer credit card or bank account information.
But some of PayPal's security is compromised when lined directly to a checking account, as one woman learned.
She was just scammed for hundreds of dollars when her PayPal site turned out to not be the real thing.
Message warns of suspicious activity
Delores Reed was going through her email when she found an alarming message from PayPal.
"It said that suspicious activity has been noted on your account," Reed said. "So naturally, I'm going to go to Paypal to find out what's going on."
She followed the link, where the site asked her to log in and call a "representative" who would help her.
"I figured it was PayPal. I've always been able to trust PayPal. It looked very believable," she said.
But it wasn't PayPal. It was a phishing scam. She ended up giving her login credentials to someone who she now believes was actually in Vietnam.
"Right after that," she said, "they just started taking money out of my account."
Unfortunately, Reed's PayPal account was not connected to a credit card, where she could have disputed the charges. Instead, it was linked directly to her bank account, and scammer took more than $700.
"That's my meal money. That's my food money," Reed sadl
The good news is that Reed's bank has agreed to give her $300 immediately and is investigating whether there is any way to reverse the charges on the rest.
How to protect yourself
If you are a PayPal customer, there are ways to make sure this does not happen to you.
- If you receive an email about your account, log in through www.Paypal.com.
- Do not click on any email links.
- Beware emails saying "your account is about to be suspended," or "you have overpaid."
- If you are suspicious of anything you're being told to do, stop immediately.
Reed wishes she had done so.
"I had a little bit of suspicion, but I didn't heed on it," she said.
Perhaps the best way to protect yourself is to connect PayPal to a credit card, not your bank account.
That way you won't be responsible for any fraudulent transactions, and you don't waste your money.
Don't Waste Your Money" is a registered trademark of Scripps Media, Inc. ("Scripps").
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