PayPal scam exploits Buyer Protection Program

[mrtim63]

As most know, PayPal has a buyer protection policy that goes for 6 months beyond the purchase date. What you might not know is that any buyer on ebay can wait until the ebay return period expires and then make up a bogus reason for a refund and they will get their money returned. There is essentially nothing the seller can do to protect themselves.

Here's what happened to me. April 11 I sold a brand new in box android phone on eBay. Five months later, the buyer contacted me and informed me the phone worked fine on Verizon until September 8 when he attempted to upgrade the OS and bricked the phone. He wanted me to refund his money. He even provided a photo of the phone screen showing it was bricked. I liken this to him smashing the screen 5 months after purchase and wanting his money back. I said no, you broke it.

He put in a refund request with PayPal simply claiming "phone not as described", no details, no proof. I provided Paypal a detailed response and included the message exchange.

PayPal found in favor of the buyer. When I called, PayPal told me they don't accept ebay messages or photos as proof. What do they take? Your word against theirs and to keep buyers happy they usually find in the buyer's favor.

I am not a small business, I'm just some guy struggling to make ends meet who resells items I find cheap. I don't have the money to pay a bogus return. Nevertheless, PayPal says they will deduct it from my empty checking account and I have NO recourse. What's worse, I was told even if the phone is physically damaged, as long as the tracking number shows a completed return, I'm out the money.

The worst part for me is that PayPal takes no risk on a policy that is so easily defrauded. ALL OF THE RISK IS TAKEN BY THE SELLER. What did this bad decision cost PayPal? Nothing. I have proof he is lying and provided it, but PayPal never bothered to look at it.

Anyone know if there is anything I can do? I already plan to shutdown my eBay and PayPal accounts. My trust has been violated.

[gracieallen01]

It's past time that people started standing up for themselves with PayPal, just like ebay.  Start reporting these incidents to the USPS authorities for mail fraud and IC3 for fraud.  Enough complaints and people start getting irritated - at being bothered, at the crime rate, whatever - and start looking into things.  USPS has their own 'Intranet' and IC3 keeps records - what is it they say, 'nothing completely disappears from the Internet'? 

A person may not get any obvious results (or they may), but it gets it 'out there' in front of someone, somewhere.  And, most people really, really, REALLY dislike to have fingers pointed at them!