Friends and family scam on the receiving party

[Temp20230406i]

So I recently let a friend send me money on PayPal and after receiving the payment the following day I deposited it in my bank account. The next day I go back on PayPal and my account is negative. I ask PayPal what's going on and they tell me that the sender reported it as unauthorized to the payment issuer and that's how they got it refunded without me being notified how do I prove that I did nothing wrong and the person must not be a friend.

[kernowlass]

@Temp20230406i 

Its against Paypal rules to accept a family / friends payment for selling goods and you risk your Paypal account being limited if you do so.

A buyer would not be able to open a Paypal dispute for non-receipt of item or item not as described as they would have no Paypal buyer protection.

However they can still open a dispute for an unauthorised transaction OR do a chargeback (via their card issuer) and you may well lose as you would have no Paypal seller protection.