Most Popular Scams: PayPal Dispute
Posted on | October 22, 2009 | No Comments
In the article series ‘Most Popular Scams’, I’ll get around some of the most common scams pestering MMORPG communities. I’ll start out with a very well known PayPal scam, where a buyer will open a dispute immediately after closing a deal. I’ll also get around some of the ingame scams players are often confronted with.
PayPal scam gaining popularity
This scam is increasingly popular because of the way PayPal’s system is constructed. Dealing with virtual property, which is the category MMORPG accounts fall under, it is increasingly difficult for a seller to prove he’s actually sold and delivered the said goods. The scammers of course know this and exploit it to the fullest extent.
The way the scam works is as follows: Buyer finds a suitable account and makes arrangements with seller. Seller sends payment to buyer, buyer accepts and thus hands over the account information. Everything is blissfull for a while, as both parties have been satisfied. All of a sudden, the buyer checks his e-mail only to find a dispute has been opened by the buyer. The buyer claims he’s never received the goods he has paid for. PayPal tries to figure out what happened and requests the seller to submit proper documentation: Such as a freight form or other documentation which serves to prove the seller has filled his end of the bargain. Of course, having traded virtual property, no such documentation exists. The buyer ends up with an empty PayPal account and no MMORPG account either. At the same time, if the seller has transferred the funds directly to his bank account – and converted the money into a diferent currency – the seller will be stuck with the additional fees.
Little can be done to avoid it
With the regard to avoiding this scam, little can be done. Some people suggest taking screenshots and taking various countermeasures to avoid the situation. But having struggled with PayPal for a number of years, I know for a fact, that little can be done to avoid disputes opened by dishonest buyers.
I recommend demanding security in the shape of valid information on your buyer, before you even get to the PayPal transaction part of a trade. Everyone has a phone number and an address – and if they don’t, you can be sure you have a scammer on your hands.
Good luck out there and remember – You can avoid a lot of similar headaches by buying my book.
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