PayPal
Scam Cost $1457.98 in iPhones Shipped to Russia

Anonymous 63955
07-10-2007
3

iPhones sold for 1457.98 on 30 JUN.

Funds were authorized through PayPal from a VERIFIED user with legitimate feedback. No shipping address was provided. I questioned the buyer as to why and received the following.

EMAIL CORRESPONDENCE FROM EBAY MEMBER TO MEMBER
(Buyer)
santora 12 wrote:
Hello I've just sent you $1458 via PayPal
(2 payments by $729)

My shipping address is in Moscow, RUSSIA.

Please declare the cost of the package content as $350 to avoid taxes, also mark it as a "gift" (not merchandise) and describe the content as "phone" (not iphone) - this is very important because taxes in Russia are really high - 50%.

Insure the package for the same amount (the same cost, i.e. $350 should be everywhere because it will be strange if content with cost of $350 will be insured for $1500).

Also, please provide me the tracking number after the shipment.

Thanks!

eBay Member wrote:
eBay sent this message to (santora12). Your registered name is included to show this message originated from eBay.

Transaction 02JUL sent through USPS Express Mail International: tracking number EB 196122536 US

EMAIL CORRESPONDENCE
(Seller)
The phones were shipped out this morning at 0930 central U.S. time from Florida. Enjoy your product and thank you for payment.

Shipment of product on 03 JUL at 0930 via Express Mail International.

PayPal allegedly sent emails on 02JUL, 04JUL and 06 JUL informing the seller of unauthorized use of funds and a temporary hold until resolved. I never received these emails. I receive emails from them of automatic payment, but never one of funds held. If I had received the one on the 2nd of July, I would have never sent the items.

Key points:
1. All bases checked. The buyer was a verified PayPal user. eBay messages originated from an authorized user with legitimate feedback. There was proper English and appropriate communication between seller and buyer through the eBay member-to-member link.
2. Funds were authorized through PayPal 7/2 from a verified PayPal member.
3. The item was shipped to the addressee from whom the member-to-member contact originated. The buyer was verified through PayPal.
4. An email was sent with the tracking number on 7/3.
5. The seller checks the bank account to see why funds were not deposited and checks PayPal, where he finds out that this situation is occurring before his very eyes.
6. Funds were placed on hold by PayPal for unauthorized use 7/2. Alleged emails were sent to the seller on 7/2, 7/4 and 7/6 discussing unauthorized CC use. No emails were ever received. I would have never sent the product if these emails were sent. They were not though!
7. The seller contacts PayPal, where, in not so many terms, the resolution center states, "I am sorry but because of policy, we are unable to do anything about it."
8. THIS IS AN ongoing scam that has happened before, and PayPal has yet to correct the situation, so now sellers are dealing through PayPal hazardly. Exact same scam, exact same address, and nothing has been done about it.

Organized crime by the Russian mob? Organized crime by PayPal? Something is for certain: PayPal is unorganized when it comes to customer safety.

Everything online comes with a risk, but when an organization like PayPal fails to warn its customers appropriately, even after the SAME scam has happened, that is inappropriate customer service. How many more people does this have to happen to in order to get corrected? There are two people that I know this has happened to.

This is an ongoing scam and no one, not even those we entrust with our products, will do anything about it. 1457.98 dollars lost on a VERIFIED ACCOUNT. Sellers and buyers beware, as PayPal says they will guarantee you your safety.

1. Contacted eBay to report fraud 7/6.
2. Contacted PayPal to report fraud 7/6.
3. Contacted USPS to attempt to intercept the package. Unable to since it left the country.
4. Contacted the Russian Post Office where the package is being sent.
5. Contacted the FTC on 7/7.
6. Contacted the Sheriff's department in Pensacola, Florida and spoke with Deputy Sheriff B. Powell on 7/7.
7. Contacted computer crimes, 850-436-9630.
8. Contacted FBI internet crimes.
9. Contacted the Better Business Bureau on 7/7.
10. Contacted Sheila at PayPal on 7/7/07 to discuss the matter further and submit an email to PayPal Pending-reversal@paypal.com.
11. Contacted Rich, an associate at Executive Escalation for PayPal. He will not call back!
12. Contacted ATT / Cingular and submitted the iPhones' ESN numbers to prohibit activation of the stolen phones.
13. Speaking with local attorneys, as the seller is being discriminated against. You cannot reverse one case with the same circumstances and not do it for the other. Likewise, negligence is a factor since there is evidence of the same scam occurring to more than one person.