There’s a new PayPal phishing scam making the rounds, and it’s so convincing that even security-conscious users are getting caught in it. Unlike typical scams riddled with typos and fake domains, this one uses PayPal’s own email system to send you an alert that looks 100% real.

You might get a message like, “You added a new address. This is just a quick confirmation that you added in your PayPal account.”

Except … you didn’t. And what if you don’t even have a PayPal account? Here’s what this scam entails, why it works and how to protect yourself.

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FAKE VENMO ACCOUNTS ARE STEALING DONATIONS FROM REAL CHARITIES

Why the latest PayPal phishing scam is so convincing

Most phishing scams try (and fail) to impersonate big companies. You’ve probably seen the classics: weird grammar, suspicious email addresses, Microsoft spelled with a “k”. They’re laughably bad. But this scam flips the script because it uses PayPal against you. Here’s how the scam operates:

Exploiting real features: Scammers abuse PayPal’s “add address” or “money request” tools. By entering your email, they can trigger real emails from PayPal’s real domain. And this works even if you don’t have a PayPal account.

Bypassing filters: Because these emails come directly from PayPal’s servers (service@paypal.com), they pass all security checks and appear legitimate in your inbox.

Lack of suspicion: Some versions contain no phishing links at all, just a scammer’s phone number, making them even harder to detect.

Panic bait: The message often claims a new address was added, or a large payment is being processed, getting your attention and provoking a quick reaction.

Follow-up attacks: After the initial email, scammers may later contact you pretending to be PayPal support. Some urge you to click a link to “secure your account”, which leads to a fake login page designed to steal your credentials. 

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Real examples of the PayPal phishing scam in action

This scam has been reported by dozens of users on Reddit and cybersecurity forums. One Reddit user posted a detailed thread in r/Scams showing screenshots of phishing emails that look like they came straight from PayPal’s official address. 

In a newer and more sophisticated twist, scammers are removing links altogether. Instead, they include a phone number and ask you to call. Once you do, you’re connected with a fake PayPal representative who says they need to verify your identity. They then instruct you to download what appears to be a PayPal-branded support tool, but really it’s a customized remote access app hosted on a different server. And once it’s installed, it gives the scammer full access to your device.

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How scammers are hijacking PayPal’s system to send fake alerts

This part is still a bit of a mystery. With typical PayPal invoice scams, content is tightly controlled, which means you normally can’t change the email structure or messaging. However, these new emails suggest that scammers may be exploiting internal features, like business tools or API fields, to sneak custom content into PayPal-generated alerts. It’s not just phishing, it’s weaponizing a legitimate system to create trust and evade detection.

Why this PayPal phishing attack is so dangerous

This scam is especially effective and dangerous because the emails come directly from PayPal’s official servers, making it difficult to distinguish them from legitimate messages. Since the sender address and branding are authentic, recipients are more likely to trust the communication without suspicion.

The scammers also use urgent language that creates a sense of panic, such as warnings about unauthorized activity or large charges. This pressure encourages people to act quickly and often before fully considering whether the alert is genuine.

Additionally, the scam often involves follow-up contact through calls or texts from individuals posing as PayPal personnel, further exploiting the initial confusion and increasing the chances of victims giving up sensitive information.

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HOW TO PROTECT YOURSELF FROM THE VENMO, ZELLE, AND CASH APP SCAM THAT CAN WIPE OUT YOUR SAVINGS IN SECONDS

How to protect yourself from the PayPal phishing scam

Even if you’re vigilant, you can still be targeted. Here’s how to stay safe:

1. Don’t click links in suspicious emails, even if they look real, and use strong antivirus software. If you receive a PayPal alert you didn’t expect, go to PayPal by typing paypal.com into your browser or using the official app. Never click links or dial phone numbers provided in the email.

The best way to safeguard yourself from malicious links that install malware, potentially accessing your private information, is to have antivirus software installed on all your devices. This protection can also alert you to phishing emails and ransomware scams, keeping your personal information and digital assets safe. Get my picks for the best 2025 antivirus protection winners for your Windows, Mac, Android and iOS devices.

2. Enable two-factor authentication (2FA): Adding 2FA to your PayPal and email accounts gives you a second layer of defense even if your password gets compromised.

3. Use a password manager: Using a password manager is the best way to ensure every login you use has a unique, strong password. No repeats means no chain reaction if one site gets hacked. Get more details about my best expert-reviewed Password Managers of 2025 here.

4. Check your account manually: If you’re ever in doubt, just log into your PayPal account directly. Review recent activity and see if anything looks off. There is no need to rely on alerts alone.

5. Report the scam: Forward suspicious PayPal messages to phishing@paypal.com. You can also report phishing attempts to the FTC. 

6. Use a personal data removal service: Since phishing scams like the recent PayPal scam often target personal information that scammers gather from data brokers and people search sites, using a reputable data removal service can help reduce your exposure. Check out my top picks for data removal services here. 

Get a free scan to find out if your personal information is already out on the web.

Kurt’s key takeaways

This phishing scam is dangerous because it uses real PayPal emails sent from service@paypal.com. Scammers exploit PayPal’s built-in features to send real notifications that look legitimate. What makes it especially sneaky is the absence of links, Instead, these emails include a phone number, making them more likely to pass through spam filters. When you call, you’re connected to a fake PayPal rep who pressures you into downloading a remote access tool disguised as support software. The safest move? Don’t click, don’t call. Just go straight to PayPal.com and check your account manually.

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