How Scammers Use Small Business Names to Send Fake PayPal Invoices

Imagine getting charged a thousand bucks for a mid-century armchair you never ordered. At that price, it better come with a personal butler and a lifetime warranty—but instead, what you actually get is a scam call.

In this publication, we’re uncovering a crafty PayPal invoice scam that’s been making the rounds, and how one small business owner in Connecticut got caught in the middle. Let’s dive right in.

PayPal invoice scams are tricking people with realistic-looking bills and fake urgency. Victims are told to call a number to “fix the issue,” but that number belongs to the scammers, who pressure them into giving away sensitive information or money.


Here’s how it works:

  • You get what looks like a legitimate PayPal invoice. The note shouts: “Call this number now to cancel” or “Your account is compromised.”
  • The phone number doesn’t belong to PayPal—it belongs to scammers waiting to trap you.
  • Once you call, they’ll steer you into sharing bank details, installing remote software, or even paying a “cancellation fee” straight to them.


Who’s targeted?

Pretty much anyone with an email address. Victims have included individuals, schools, and random organizations across the U.S. Businesses aren’t safe either—sometimes scammers hijack real PayPal accounts or impersonate company names to make the invoices look credible.

Take Palomino Bazaar in Connecticut. Its owner, Kate Ferguson, discovered her vintage shop’s name plastered across 200+ fake PayPal invoices sent nationwide. She wasn’t even operating the business anymore, yet her inbox blew up with confused calls—including one from a Pennsylvania school district. Worse, her separate interior design company started catching flak because people mixed up the names. Her reputation got dragged into a scam she never ran.


Why should you care?

Because the risks are real on both sides. As a recipient, you could hand over your banking info or lose money to fake “cancellation fees.” As a business, even if you’re not hacked, your brand can get hijacked and your credibility shattered. It’s a double hit: lost trust and hours spent untangling the mess.


So, how do you protect yourself?

  1. Never call numbers inside invoices or emails. Always log directly into PayPal to verify.
  2. Do the 60-second check. Open PayPal → Activity → Invoices. If it’s not there, it’s fake.
  3. Use strong, unique passwords and enable 2FA for PayPal and the email linked to it.
  4. Report suspicious invoices to phishing@paypal.com and block the sender.
  5. If you’re a business, lock down old accounts and publicly warn customers if your name gets hijacked.


Quick Tip:

Real companies don’t hide behind mystery phone numbers. If the solution isn’t inside your official PayPal dashboard, it’s a scam.

Your turn: Have you ever received a sketchy PayPal invoice—or worse, had your business name dragged into one? Hit reply and share your story. Your experience could be the warning someone else needs.

Stay safe, stay informed.

 

Keyword Definitions:

  • PayPal Invoice Scam: A fraud scheme where scammers send fake PayPal invoices to trick recipients into calling them or paying fraudulent charges.
  • Phishing: A type of cyberattack where scammers impersonate legitimate entities to steal sensitive information.
  • Business Email Compromise (BEC): A scam where attackers gain access to or impersonate business email accounts to defraud companies or their customers.
  • Two-Factor Authentication (2FA): An extra security step requiring a second form of verification (like a text code) in addition to a password.
  • Brand Hijacking: When scammers misuse a legitimate business name or identity to trick people into trusting their scheme.

To read more, kindly find source article here

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