PayPal Scams: Fake Invoices, Payment Holds and Support Numbers

How does the PayPal scam work?

1. Scammers abuse PayPal's real invoicing system to send genuine PayPal emails for purchases you never made, with a 'call to dispute' number.
2. The fake support line 'finds' a compromised account and requests remote access or a verification payment.
3. Seller-targeted versions fake a 'payment on hold until you ship' email to push sellers into mailing goods before any money exists.
4. Overpayment variants send a fake payment notice above the price and ask you to refund the difference.

What does the PayPal scam sound like?

A typical opening, paraphrased from the scripts reported to fraud agencies. Wording varies, but if your call or text follows this shape, treat it as this scam:

Common variations of this scam

• Fake invoice with support number. A real PayPal invoice email for a fake charge, with a 'dispute' phone number in the note that connects to the scam call center.
• Overpayment refund. A buyer 'accidentally' pays more than your asking price with a fake payment notice and asks you to refund the difference before you discover no money arrived.
• Payment on hold for sellers. Sellers get an email claiming the buyer's payment is held until they ship and upload a tracking number, pushing them to mail goods that were never paid for.
• Account limitation phishing. A text or email says your account is limited over suspicious activity, linking to a cloned PayPal login page.

What are the warning signs?

• Invoices for things you never bought, even arriving via real PayPal emails
• Any support phone number inside an invoice note or email
• Money 'on hold pending shipment' emails that don't match your actual PayPal balance page
• Overpayments with refund requests
• Requests for remote access to fix a PayPal issue

Who do these scammers target?

Casual marketplace sellers are the main target for hold and overpayment variants, because irregular selling makes odd payment flows seem normal. The fake-invoice variant is sprayed at everyone, banking on recipients panicking over a charge they don't remember, especially subscription-priced amounts that sound plausible.

Scammers also spoof local numbers to raise answer rates, so a familiar-looking area code means nothing on its own. If a specific code keeps calling you, check its scam activity in the area code directory.

What should you do?

1. Ignore numbers in emails. Log into paypal.com directly; if nothing is in your activity or resolution center, the email was bait.
2. Cancel unknown invoices inside PayPal without calling anyone.
3. Sellers: ship only when the money shows in your PayPal balance, not because an email says it's waiting.
4. Report phishing to [email protected], and the phone number to the FTC (US) or CAFC (Canada).
5. Run the callback number through a reverse phone lookup to check reports.

Official reporting: FTC: report fraud (US) · Canadian Anti-Fraud Centre (CA)

How do you protect yourself going forward?

• Handle every PayPal question inside your logged-in account; if it isn't in your activity or Resolution Center, it isn't real.
• Never call phone numbers found in invoices or payment emails; PayPal handles disputes in-app.
• Sellers: ship only when the money is in your PayPal balance, and never refund 'overpayments' outside PayPal's own refund flow.
• Enable two-factor authentication on both PayPal and the email address attached to it.

Frequently asked questions

Other phone scams to know

• Amazon impersonation scam
• IRS tax scam
• CRA tax scam
• Bank impersonation scam
• Romance scam
• Crypto investment scam
• Job and employment scam
• Rental scam
• Grandparent emergency scam
• Tech support scam
• Package delivery scam
• Social Security / SIN scam

Getting calls from a specific area code? Check its scam activity in the area code directory, or go straight to a reverse phone lookup.