20 June, AtoZ Markets - You might be wondering why Bitcoin is becoming more and more attractive. The price is driven by demand! But why is there such a huge demand? There are many reasons for high Bitcoin demand, but one of the reasons is blockchain technology can overcome financial scam. Transactions are not fulfilled by any financial institution and cannot be reversed.
In this article, I am not planning to talk about Bitcoin, but about PayPal and their buyer protection policy which is being abused by scammers and how PayPal buyer protection policy supports online scammers. Yury Safronau explains how scammers targeted him and how PayPal policy supported scammers, making him lose his PayPal account.
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PayPal buyer protection policy supports online scam
We met Yury Safronau in person and discussed his PayPal buyer protection policy incident which scammers not only stole his money, but also PayPal charged him $560. So, why and how does PayPal buyer protection policy support online scam?
Yury Safronau tells his story and shows his PayPal discussion:
The story started in March 2017. I had some Webmoney on my wallet and needed some PayPal. After a brief research I found a legal exchange platform where you can exchange Webmoney for PayPal - http://paypal.exchanger.ru.
If you make a brief research you will find out that, this is an official Webmoney service and all Webmoney transactions go through Webmoney wallets. On the other hand PayPal transactions are made from one person's account to another directly.
At the beginning, when I used paypal.exchanger.ru to exchange Webmoney for Paypal in March everything went very smooth, until on May 19th. On May 19th I received a very strange email from PayPal.
The PayPal dispute email dictated that the person, whom I had exchanged money 28 times more than 2 months ago, reported those transactions as unauthorized! 28 transactions were reported to be unauthorized!
That may sound ridiculous for you, however we had 28 transactions, not 1! And after 2 months, this person decided to file a report for 28 unauthorized transactions. Yet, this did not raise flag for PayPal!
PayPal does not listen
PayPal put a hold on the money which were involved in those 28 transactions and asked for the proof that the transactions were legit.
I provided PayPal with all the proof they asked including screenshots from my Webmoney wallet (with transaction details), screenshots from official exchange site and the exact explanations of every single transaction they’d asked.
Not, just one proof, from 3 different sources.
I was sincerely hoping that after PayPal received the proof that those transactions were legit, the money was exchanged on an official WebMoney Paypal exchange platform. All the evidence show that those transactions were authorized by the counterpart, they would remove hold from those transactions.
But PayPal's decision was hair-raising!
They did not only decide to deduct the money from my PayPal account, but also charged me 20$ chargeback fee for each transaction, which resulted in total $560 chargeback fees!
Now my balance looks like this!
The situation is as clear as a bright day! Scammer changed his PayPal for my Webmoney, 2 months later he reports his transactions unauthorized, taking advantage of the PayPal’s biased buyer protection policy! PayPal meanwhile is biased, does not pay attention to the detail. PayPal pays a scammer back by deducting funds from the counter account! And on top of it PayPal is charging the victim an extra so-called $560 chargeback fee!
I've filed several complains and made multiple calls to PayPal, but all the time the answer was the same "this is our policy"! So, PayPal supported online scam without listening to me.
My PayPal experience has lead me to make a decision that I will never use PayPal again. However, under no circumstance does it serve as an advisory. By sharing my experience I wish to make PayPal be aware of the gap in PayPal buyer protection policy, which then need to fix, ASAP.
Stay Safe, Stay Secured!