UAE & GCC Car Sellers Be Warned Of PayPal-related Chargeback & Claim Scams

This article is based on a true, personal experience that continues to unravel as we speak ...

For those too busy to read, my quick advice is to "Never sell your car - or any precious item - against a PayPal payment, even if the money was deposited in full into your paypal account before handing over the sold item". This is of no fault at PayPal as a trusted payment service provider.

For those relishing the emotional and suspense aspects of life, here are the details.

2 days back, I posted my car for sale at a number of UAE classifieds sites. Up to my surprise, I received a whatsapp message from a US mobile number asking me detailed questions about the car, negotiating the price and later expressing willingness to pay upfront and later arranging the car to be shipped through a freight company. By now, you would roll your eyes and say its an obvious scam! What's the big fuzz all about! Well, allow me to say that you are wrong!

Read through, please..

The whatsapp buyer provided his name willingly as in the attached image. He confirmed that he is a PayPal verified member and was willing to furnish all the details. Moreover, he provided me with the actual, legitimate PayPal website link. Finally, he assured me that I should do nothing, till I receive the full funds in advance in my PayPal account. This juxtapose with publicized scammers' behavior where they typically hide their identities, choose eccentric payment methods and elect to pay a down payment.

Following that, I verified the US mobile number through a number of reverse phone lookups websites to find the number classified as VoIP registration with LOW RISK of fraud.

At this point of time, my comfort level was up in the sky. I went to the PayPal website to verify if they allow transfers from a PayPal account into non US/Canada-based bank account. After reading few instructions, I grew bored and insisted on a Bank Wire, knowing its final and irrevocable - being an ex Banker myself -.

Then, 2 incidents stroke the flames of suspicion. The first was the buyer's insistence to use PayPal and not any other payment form, truthfully touting PayPal ease and speed. He went on suggesting multiple ways on how I can register in PayPal. The second was an advice from my 12-year old son - who was laying on the couch battering flu with a pale face and drained energy - to check an emerging issue called "PayPal Chargebacks and Claims".

I did the search and was mesmerized to see how often Fraudsters purchase cars online against PayPal, receive the cars then, dispute the transactions; causing the PayPal balance to be withdrawn or put on hold. Claiming that the car is in bad condition or never delivered allows them to block the credit card- or eBay-related transaction which propagates into PayPal claim or freeze. The final chapter of the tragedy is when the Fraudsters sometimes call you to solicit funds in exchange of waving off the dispute !!!

To end on a funny note, as I was writing this article, another whatsapp buyer contacted me from a different US mobile number interested to buy the car !!! Apparently my US-manufactured Jeep is in short supply in its home land :-).

If you want to know what I answered the 2nd buyer, leave me a comment.

God bless you all.

Disclaimer: This article represents no accusation, allegation, critique or otherwise against PayPal, UAE Classifies web sites or any other third party, whether explicit or implied. It's exclusively meant for ensuring public safety.