Seller beware! New scammer activity buying dog food or coffee makers.

[freeshipavenue]

Hi sellers.

From before about two months ago we started to receive a lot of PayPal non authorized cases. All this case were for two types of items: dog food and coffee makers. In one week we have about 10 cases opened on our PayPal accounts!

It was absolutely unusual statistics. We took all these cases and checked them one by one. I can definitely say that all these cases made by one person (or group of persons).

All these orders placed from just created eBay accounts and all these orders have OUTLOOK emails. 

 I spoke with couple of other sellers and they have same.

These cases usually closed by Paypal seller protection but you MUST to provide a tracking number. 

It does not matter if you calling Paypal and explain, without the tracking you lose the case. 

From what I understand this fraud comes from seller that simply sell items for lower price and than place order on other seller and just provide address his own buyer. 

Before scammer opens a case on Paypal he ALWAYS contacts and asks tracking number! Even tracking number uploaded in the order , he still asks it. 

As soon you respond him,  after day or two or even same day, you getting brand new open non authorized case on Paypal. 

I have attached a screenshot of my Paypal resolution to show how the big this problem.  Just look on it. The first screenshot is for closed cases and the second for still opened. 

All orders are between $50-60$. 

[freeshipavenue]

[freeshipavenue]

If you see unusual sells for dog food or coffee makers, check it out.
One day I received 4 orders for same dog food. I was very happy. Wow! What are sales today!
If you see same - check!
If you don't see email in PayPal transaction just go to your Email box. Find the email that came from PayPal  ( payment email ) and just click replay. You will see the email of buyer.

[dhbookds]

I probably need more coffee, but I don't understand the scam...........

Surely, selling on ebay, everyone is going to have a tracking # for that amt of sale...so he opens the case with PP,   seller shows the tracking........PP finds for seller......    where does the buyer get anything but what he paid for? 

[freeshipavenue]

I'm sorry my English is not the best.

It's not a pure case of Paypal.

It is a non authorized chargeback. Different and much complicated than a regular Paypal case.
In other words, the scammer only using a Paypal as a gateway but physically pay by credit card.
He does not even must have a Paypal account for this. The scammer is doing a guest checkout.

After this he is filling a case at his credit card. The credit card placing the payment on hold. But because it was paid by Paypal gateway, Paypal also placing the payment on hold.

The credit card always refunds to scammer. The scammer get the money back and now the deal is between the Paypal and seller ( the seller from which the scammer bought the item).

[dhbookds]

That's makes  a bit more sense.........  but if you mailed to the address ok'd by paypal..........they should be covering any loss, no matter what the cc does........at least I thought that was how it worked for unauthorized charges...........

[freeshipavenue]

I understand what you mean. 

The buyer is getting item he wanted. 

The seller wins the case because of Paypal's seller protection. 

The scammer gets his money back from his credit card.

It sounds like win-win for everyone. The lose side is only Paypal ( but who cares). 

But it's scam. Seller is involving in that scheme even he is also a victim.

One day the Paypal can place a limitation in your account. They can ask you: OK dude, the % of non authorized chargback is  5% ( just for example) but your level was 15% in the last December. Explain it to us please.

Send us invoices, send us verification information. Till this the account will be limited and you cannot use it. 

[freeshipavenue]

Yes you are correct.
Paypal covering the loss. For now they covered every case.
But again, questions can come from Paypal side as well. I pretty sure they have some metrics that count % and it can alert one day.

[dhbookds · Accepted solution]

ok, what you are describing is a triangulation scheme:

https://www.radial.com/insights/understanding-triangulation-fraud

[freeshipavenue]

Yes it is.
100%
It is for sure a lot of scammers here on Ebay around us. Just wanted to head up with this specific situation ( outlook email, dog food, coffemaker). Hope it will at least help to somebody.

[a_c_green]

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@dhbookds wrote:

ok, what you are describing is a triangulation scheme:

https://www.radial.com/insights/understanding-triangulation-fraud

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It appears that all the OP's listings suddenly ended yesterday. I'm still trying to understand the sequence of events here, because nothing that the OP is describing is really a red flag that one could see in advance. Certainly the fact that the buyer name matches their email account indicates nothing unusual. I would say that most of my buyers have their names in their email accounts (as do most of my family members as well). 

The OP's listings all look like dropship items and feedback suggests some questions about authenticity. Could it be that the OP's dropshipper got themselves in trouble? Any high-volume seller could attract a certain percentage of bad credit card purchases, but as long as the seller can prove shipment to the address provided with the payment, they should win the dispute.

[dhbookds]

I"m wondering about the drop shipper also..........he would be the one who received the legit order and then replaced an order to a legit seller, but with a stolen credit card.......

I know Pet Smart was taken to the laundry by alot of these sometime ago.

[freeshipavenue]

The OP means the original poster? 🙂

Nothing has been ended yesterday.  Only unsold items. About 1.5K

All other listings are available just hidden from searching because of non related to this topic issue.

By clicking on any of feedback you can see items alive.
My feedback is pretty ok for this industry 99.5% for drop shipping concept is very good.
I'm a top seller with 12.251K active listings.
I don't have any troubles. Thank you for worrying 🙂

[freeshipavenue]

I understand about that Emails usually have names or family names, but how many of them are outlook? 

I did not want to provide screenshots with somebody's accounts but seems you got a fun to switch the problem to OP so I will do it. 

One of items i got these cases is this one. 

https://offer.ebay.com/ws/eBayISAPI.dll?ViewBidsLogin&item=192771063550&rt=nc&_trksid=p2047675.l2564

There is a screenshot. I cut two regular sellers but show you two sellers from cases. 

[freeshipavenue]

you can see borear- 25 and borear78 

both orders were opened not authorized cases on paypal

There is case 1 

there is case 2