$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
PayPal invoice scam
Scammers send real PayPal invoices for products or services you never ordered — such as cryptocurrency purchases or tech support — hoping you will call the embedded phone number and hand over personal information or remote access.
“impersonation scam”
↑ 604%Key indicators
Usually targetsPayPal users
Often hitsSmall business owners
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $12K
Recovery rate~15%
Annual reports330,000
Scam breakdown
1
Scammers use PayPal's legitimate invoicing feature to send real invoices to random email addresses, making the email appear authentic.
2
The invoice typically mimics a cryptocurrency purchase or tech support subscription, including a phone number to call to 'cancel.'
3
When victims call the number, fake agents request remote access to the victim's computer or ask for banking details to process a 'refund.'
What to do first
If you receive an invoice for something you did not buy, do not call the phone number — log into PayPal directly and decline the invoice.
Related terms
fake PayPal invoicePayPal billing scamPayPal crypto invoice scamBrand impersonation scamsPayPalSurgingPayPal usersAdultsOlder adultsSmall business ownersPayroll, HR, and finance teamsInvestors and tradersUnited StatesUnited KingdomCanadafake PayPal invoicePayPal billing scam
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Rachel, 35, a paypal users, encountered what appeared to be a legitimate brand impersonation scams situation while using PayPal. Scammers use PayPal's legitimate invoicing feature to send real invoices to random email addresses, making the email appear authentic.
Step 2
What happened next was calculated: The invoice typically mimics a cryptocurrency purchase or tech support subscription, including a phone number to call to 'cancel.'
Step 3
The pressure escalated quickly: When victims call the number, fake agents request remote access to the victim's computer or ask for banking details to process a 'refund.'
The outcome
Rachel realized something was wrong when you receive a paypal invoice for something you never purchased or authorized. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
If you receive an invoice for something you did not buy, do not call the phone number — log into PayPal directly and decline the invoice. Rachel's experience shows why you receive a paypal invoice for something you never purchased or authorized and the invoice includes a phone number to call for cancellation rather than standard dispute options are the clearest early warning signs.
How to identify it
- You receive a PayPal invoice for something you never purchased or authorized
- The invoice includes a phone number to call for cancellation rather than standard dispute options
- The invoice note threatens account suspension or immediate charges
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓If you receive an invoice for something you did not buy, do not call the phone number — log into PayPal directly and decline the invoice.
- ✓Report the invoice as spam within PayPal by selecting 'Report this invoice.'
- ✓Forward suspicious PayPal emails to [email protected].
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- PayPal confirmed that scammers abuse its real invoicing system to send fraudulent invoices, which bypass email spam filters because they come from PayPal's actual servers.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓If you receive an invoice for something you did not buy, do not call the phone number — log into PayPal directly and decline the invoice.
- ✓Report the invoice as spam within PayPal by selecting 'Report this invoice.'
- ✓Forward suspicious PayPal emails to [email protected].
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
PayPal confirmed that scammers abuse its real invoicing system to send fraudulent invoices, which bypass email spam filters because they come from PayPal's actual servers.
BBB Scam Tracker 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
PayPal users, Adults, Older adults
Geographic concentration
United States, United Kingdom, Canada, Australia
Primary channel
PayPal — Brand impersonation scams
Why this group is vulnerable
PayPal users are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The rapid increase in reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- PayPal confirmed that scammers abuse its real invoicing system to send fraudulent invoices, which bypass email spam filters because they come from PayPal's actual servers.
Source notes
- BBB Scam Tracker 2025
Frequently asked questions
Common questions about paypal invoice scam
How does the paypal invoice scam work?+
Scammers use PayPal's legitimate invoicing feature to send real invoices to random email addresses, making the email appear authentic. The invoice typically mimics a cryptocurrency purchase or tech support subscription, including a phone number to call to 'cancel.' When victims call the number, fake agents request remote access to the victim's computer or ask for banking details to process a 'refund.'
What are the warning signs of paypal invoice scam?+
You receive a PayPal invoice for something you never purchased or authorized The invoice includes a phone number to call for cancellation rather than standard dispute options The invoice note threatens account suspension or immediate charges
What should I do if I encounter paypal invoice scam?+
If you receive an invoice for something you did not buy, do not call the phone number — log into PayPal directly and decline the invoice. Report the invoice as spam within PayPal by selecting 'Report this invoice.' Forward suspicious PayPal emails to [email protected].
Who is most at risk for paypal invoice scam?+
This scam primarily targets PayPal users, Adults, Older adults. It is most commonly reported in United States, United Kingdom, Canada, Australia and typically appears on PayPal.
Is paypal invoice scam getting worse?+
PayPal invoice scam is currently surging — reports are increasing rapidly. It has been reported across US, UK, CA, AU. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.