Scammed via "friends and family" payment option. Paypal can't/won't protect me.

[Nm127]

Less of a question and more of a warning to others. I was the victim of a scam earlier this year. The case was cut and dry and I have all the information to back it up in the form of email correspondence and saved chat logs (which I sent to Paypal for review in my case). Even included a photo of the scam company's now suspended website. The only issue is, I didn't know the differences in protection between "family and friends" vs "goods and services." Since the "reason for dispute" options were limited (apparently due to the "family and friends" label) I selected "unauthorized purchase" since I clearly never "authorized" to be scammed, and I had more than enough evidence to prove it. You'd think some critical thinking would prevail but nope. Because these people didn't literally hack into my account and take the money themselves, apparently the payment was authorized. I explained (and proved) that the "authorization" was within the context of a goods exchange that never happened: no good. I asked if the case could be treated as a goods and services dispute since I provided more than enough information proving it was: no dice. I've been getting the run around from this scam company for months so it's far past the date I can file a claim with my bank. The ic3.gov only uses evidence they receive in fraud statistics apparently. The long and short of it is Paypal chose to protect my scammer over me. I say all this as a warning to others, and so you guys can let me know when the class action lawsuit is happening 😤

TL;DR: Paypal chose to protect my scammer over me.

[kernowlass · Accepted solution]

@Nm127 

A friends / family (or gift payment) is intended as a transfer of funds from family or friends to one another. For this reason, there is no processing fee when payment is made with bank or PayPal balance.
However as it is a gift payment, there is also no Buyer protection as no goods or services should have been exchanged.

If he was not a close mate or family member you should never use that option as it enables the seller to evade paying his paypal fees and negates your buyer protection at the same time.

You would also not be able to open a dispute apart from one citing an unauthorised transaction but that would be automatically closed as you did authorise the initial payment.

Be careful as using that option for purchasing goods is against Paypal rules and can lead to account limitation.

If you funded your paypal payment via a credit card then contact your card issuer and see if they will help you but unfortunately they may decline as well as it was a gift payment.

[Nm127]

I understand that now, but now it's useless to me. The scam company told me to use F&F because it "had lower fees and better security." If there were some type of warning (like an, "I have read the protection guidelines and waive my rights to transaction protection" box I had to check on before making the F&F purchase,) that would have tipped me off that I was being scammed. Scrolling through various forums, a fair amount of people are having this same issue, so clearly there should be an extra safeguard.

[kernowlass]

@Nm127 

I think the clue is in the title ie gift or friends/family payment.

Were you sending money to a close friend or mate OR were you sending to a family member? If the answer is no then you don't use that option.

Also when you click to use that option it shows you goods/services (and states you would have buyer protection) and then friends/family (where it doesn't).