How to Report PayPal Fraud: Disputes, Claims, and Phishing

To report PayPal fraud, open a dispute through the Resolution Center on the PayPal website or app, or call PayPal if you have been locked out of your account. For unauthorized transactions, report as fast as you can: federal law limits your losses to $50 if you notify PayPal promptly, but that cap climbs sharply the longer you wait.¹

Report Unauthorized Transactions Immediately

If a payment on your account is one you did not make or approve, speed is the single most important factor in how much money you can lose. The Electronic Fund Transfer Act sets three tiers of consumer liability based on when you report:¹

Report promptly, and your liability is capped at the lesser of $50 or the amount of the unauthorized transfer.
Wait more than 2 business days after learning your account was compromised, and liability can rise to $500 for unauthorized transfers occurring after that 2-day window.
Wait more than 60 days after a statement showing unauthorized activity is sent, and you can be responsible for the full amount of any subsequent unauthorized transfers that timely reporting would have prevented.

The practical rule is simple. The moment you see a charge you did not make, file the report.

How to File a Dispute in the Resolution Center

PayPal handles fraud and transaction problems through its Resolution Center, accessible from both the website and the mobile app.

On the website, go to the Resolution Center and select “Report a Problem.” Choose the payment you want to dispute from your recent transactions, click Continue, and pick a reason:²

Unauthorized activity, for a payment you did not approve.
Issues with your purchase, for items that never arrived or do not match the seller’s description.
Issues with the seller, when the seller won’t respond or you can’t reach an agreement.
Billing errors, for duplicate charges or subscription problems.

In the app, tap “Activity” at the bottom of the screen, tap the suspicious transaction to open its details, select “Report a Problem,” and follow the prompts.²

Either way, PayPal assigns a case ID and sends confirmation. For unauthorized transactions, expect an update within 10 days. Keep an eye on your email and the app’s Message Center, because if PayPal or the seller asks a follow-up question and you don’t answer, the case can stall or close.³

If You’re Locked Out of Your Account

When a scammer has taken over your account and changed your credentials, you can’t file through the Resolution Center. Contact PayPal by phone instead. On the “Contact Us” page, select “Call Us,” then click the option to call as a guest to see the phone number.⁴

Have this ready to prove you own the account:

The phone number linked to the account.
A recent statement for the credit card or bank account connected to PayPal.
The email address you registered with.

Deadlines You Cannot Miss

PayPal’s filing windows are firm. Once they pass, you cannot open or reopen a dispute for that transaction.⁵

Item not received: within 180 days of the payment date.
Significantly not as described: within 30 days of delivery or 180 days of the payment, whichever comes first.
Unauthorized transaction: as soon as possible, with federal liability tiers driving the urgency.

Escalating a Dispute to a Claim

A dispute gives you and the seller a window to work things out. If they won’t cooperate, escalate the dispute to a claim, which turns the decision over to PayPal. You have 20 days from when the dispute was opened to escalate. If you don’t, the dispute closes automatically and cannot be reopened.⁶

PayPal generally requires at least 7 days to have passed since the payment date before you can escalate.⁶ Once you escalate, decisions usually come within 14 days, though some cases take 30 days or longer.⁷

To escalate, open the existing dispute in the Resolution Center and select the option to escalate to a claim. Be ready to supply receipts, photos, police reports, or third-party evaluations if PayPal asks.⁸ Respond fast; delays hurt your case.

What Purchase Protection Does Not Cover

Before you count on PayPal’s Purchase Protection, know that several transaction types are excluded outright:⁸

Friends and Family payments. Scammers often push buyers to pay this way for exactly this reason.⁹
Real estate, cars, motorcycles, boats, and aircraft. Bicycles and hoverboards are an exception.
Cash equivalents including gift cards, prepaid cards, and gold.
Investments, NFTs, and business purchases.
Custom-made items are not eligible for “Significantly Not as Described” claims.
Items picked up in person are generally not covered for “Item Not Received” claims.
Items bought for resale.
Donations, crowdfunding contributions, and gambling or gaming entry fees.

Always pay for purchases using “Goods and Services” rather than “Friends and Family.” Only Goods and Services triggers Purchase Protection.⁹

Reporting Phishing Emails and Texts

Fake PayPal emails and texts are a common way scammers harvest logins. If you receive one, don’t click any links or open attachments. Forward the entire message to phishing@paypal.com, then delete it.¹⁰

For a suspicious text:

Don’t tap any links.
Tap and hold the message, then forward a copy to phishing@paypal.com.
Block the sender.
Delete the message.

PayPal sends an automated confirmation but does not follow up on individual reports.¹⁰

If PayPal Denies Your Claim

You can appeal if you have information that wasn’t available when PayPal made its original decision, or if you believe the review process contained an error.⁸ Contact PayPal customer support to discuss reopening the case.¹¹

If you funded the payment with a credit card, you have a second, independent route: file a chargeback with your card issuer. A chargeback runs on your card network’s rules, and the issuer may reverse a charge even after PayPal denies your claim. Filing a chargeback may affect your PayPal account standing.

Where Else to File a Complaint

Three federal agencies accept fraud complaints. Filing with them can help law enforcement track scam operations and, in the CFPB’s case, put pressure on PayPal to respond.

Federal Trade Commission

Report at ReportFraud.ftc.gov. Your report goes into the Consumer Sentinel database used by civil and criminal law enforcement to spot larger fraud patterns.¹² This is the broadest option and worth filing for any online fraud.

FBI Internet Crime Complaint Center

The IC3 at ic3.gov is the FBI’s central intake for cyber-related crime. If your case involved a sophisticated scam, hacked accounts, or looks like part of a larger operation, an IC3 complaint puts it in front of federal investigators, who may refer the matter to federal, state, or international law enforcement.¹³

Consumer Financial Protection Bureau

If you’re unhappy with how PayPal handled your dispute, file with the CFPB. The bureau accepts complaints about money transfer and digital payment services. Submit online in about 10 minutes, or call (855) 411-2372, Monday through Friday, 9 a.m. to 6 p.m. ET.¹⁴

The CFPB forwards your complaint to PayPal, which generally has 15 days to respond, though some cases take up to 60 days for a final answer. Complaint data is also published in a public database. You generally can’t file a second complaint about the same issue, so include everything relevant the first time.¹⁴

1
Office of the Law Revision Counsel. 15 USC 1693g – Consumer Liability
2
PayPal US. How Do I Report an Unauthorized Transaction or Account Activity
3
PayPal US. How Do I Open a Dispute With a Seller
4
PayPal US. How to Regain Access if Locked Out of PayPal
5
PayPal US. Dispute Filing Timeframes
6
PayPal US. How Do I Escalate a PayPal Dispute to a Claim
7
PayPal US. How Long Does It Take to Resolve a Dispute or Claim
8
PayPal. PayPal Purchase Protection Program
9
PayPal US. What Are Friends and Family Payment Scams
10
PayPal. How to Report Suspicious Emails and Messages
11
PayPal US. How Can I Appeal PayPal’s Decision on My Case
12
Federal Trade Commission. ReportFraud.ftc.gov
13
Internet Crime Complaint Center (IC3). Home Page
14
Consumer Financial Protection Bureau. Submit a Complaint