How to Handle Depop Scams Involving PayPal

How to Handle Depop Scams Involving PayPal

Depop has become a go-to marketplace for fashion enthusiasts to buy and sell unique clothing and accessories. While it offers a fantastic platform for resellers to build their businesses, its popularity also attracts scammers looking to exploit unsuspecting sellers. One of the most common areas for fraudulent activity involves PayPal, a popular payment method on the platform.

Understanding the types of Depop PayPal scams is the first step toward protecting your business, your earnings, and your peace of mind. These scams can be sophisticated and prey on sellers who are busy, trusting, or simply unaware of the tactics used.

This comprehensive guide will walk you through everything you need to know about handling a PayPal scam on Depop. We will cover common scam types, the specifics of Depop's buyer and seller protection policies regarding PayPal, how to report fraudulent activity, and essential prevention tips to keep your account secure. We'll also explore how using a powerful resale management tool can help you professionalize your operations and minimize your risk.

Common Depop Scams Involving PayPal

Scammers are constantly devising new ways to trick sellers, but many of their methods follow recognizable patterns. Being able to spot a potential Depop scam with PayPal early can save you from significant financial loss and stress. Here is one of the most prevalent schemes to watch out for.

The "Reset Your Credentials" Scam

One of the more alarming Depop scams involving PayPal is the "Reset Your Credentials" scam. This scheme is a direct attempt to hack into your PayPal account and gain complete control over your funds.

The scam begins when a fraudster targets your PayPal account. They go to the PayPal login page, enter your email address (which they may have tricked you into providing or found elsewhere), and click the "forgot password" link. This action prompts PayPal to send a security confirmation code to your phone number or email address associated with the account.

The scammer will then contact you through Depop messages, posing as a legitimate buyer or even as a representative from Depop or PayPal. They will create a convincing story to trick you into sharing the confirmation code you just received. For example, they might claim they need the code to verify your identity before completing a purchase.

If you quickly or carelessly provide this code, the scammer immediately uses it to reset your PayPal password. Once they change the password, you are locked out of your own account. The scammer gains full access to your balance, linked bank accounts, and credit cards, and can drain your funds before you have a chance to react.

Understanding Depop Protection with PayPal

Depop offers its own protection programs for both buyers and sellers, but the rules can become more complex when a transaction involves PayPal, especially for users in certain regions. It is crucial to understand these policies to know what you are covered for and what steps to take if something goes wrong.

Depop Seller Protection for PayPal Sales

For sellers, knowing the boundaries of Depop Protection is key. The process is particularly specific for sellers in Australia who complete sales through PayPal.

If you are an Australian seller and a dispute arises from a PayPal transaction, you are not immediately eligible for Depop Protection. You must first go through PayPal's own dispute resolution process. This includes filing a claim with PayPal and pursuing any appeals that are available to you if the initial decision does not go in your favor.

Only after you have exhausted PayPal's process can you turn to Depop. To be considered for Depop Protection, Australian sellers must provide proof of their initial claim with PayPal and, critically, proof that their appeal was lost. This multi-step process requires diligence and careful record-keeping.

Most importantly, Depop Seller Protection has a major exclusion: it does not cover any sales made outside of the official Depop "BUY" button. If a buyer convinces you to accept a direct PayPal transfer, that transaction is considered off-platform and is not eligible for Depop Protection. This is a common tactic scammers use to leave sellers vulnerable.

Depop Buyer Protection for PayPal Purchases

Buyers also need to be aware of the specific procedures when using PayPal, particularly for those in Australia where PayPal is an included purchase method under Depop Protection.

If a buyer in Australia purchases an item that is lost or damaged in transit, their first course of action must be to file a claim through PayPal’s Protection Policy. To remain eligible for any potential coverage from Depop, this claim must be initiated within 30 days of the original purchase date.

If PayPal reviews the case and denies the buyer's claim, the buyer can then contact Depop to start a Depop Protection claim. However, Depop requires evidence of the denial from PayPal. The buyer must provide documentation showing that their claim, including any available appeals, was officially denied by PayPal.

Similar to seller protection, buyers are not covered by Depop Protection if they pay for an item outside of the Depop app or website. A direct money transfer, even if it's through PayPal, bypasses Depop's secure payment system and voids any eligibility for protection.

How Reeva Helps You Grow and Stay Secure

Managing a growing resale business across multiple platforms like Depop, Poshmark, eBay, and Mercari can be overwhelming. The more you have to juggle, the more susceptible you can become to scams and administrative errors. This is where we can help.

Our platform is an all-in-one solution designed to simplify and automate your resale business, giving you back valuable time to focus on sourcing, strategy, and security. Trusted by top resale businesses, we help sellers scale with ease.

While our platform automates tedious tasks, it also promotes a professional and streamlined workflow that naturally enhances your security. By keeping all your listing, inventory, and sales data in one place, you can more easily manage your business on-platform, reducing the temptation to engage in risky off-app communications or transactions.

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Sell Smarter and Faster with Our Tools

One of the biggest time sinks for resellers is creating listings. Our platform revolutionizes this process. You can turn photos into complete listings instantly. Just upload your images, and we'll automatically generate optimized titles, descriptions, and prices for you.

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FabFam, a reseller from Washington, says, "Reeva has cut my listing time by more than half. I can take photos, voice-to-text my details, and let Reeva handle the rest." This efficiency is a game-changer, allowing sellers like TuffNY to increase listing speed by 50%.

Save Time with Powerful Automation

Growing a resale business means keeping your listings visible and your inventory accurate. Our automation features handle this for you. We can automatically share your products on Poshmark to increase visibility and send personalized offers to potential buyers without you lifting a finger.

To keep your inventory fresh, our platform can relist stale products, bumping them to the top of search results. Crucially, our system will instantly delist sold items across all platforms to prevent overselling.

AlistairBP from Georgia calls our auto-delist feature something he "couldn't live without." This automation is how resellers like TUFFNY have cut down their admin time by at least 30%, freeing them up to source more products and expand their offerings.

Grow Your Business with Ease

As you scale, managing your operations becomes more complex. Our platform provides the management tools you need to grow and scale your business effectively. You can update and manage hundreds of listings in bulk, track your sales and profits with powerful business analytics, and even give team members access with multi-user account options.

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How to Report a Depop PayPal Scam

If you suspect you have been targeted by a PayPal scam on Depop, it is vital to report it immediately. Reporting the fraudulent activity helps protect yourself and prevents the scammer from targeting other sellers. PayPal has a clear process for reporting suspicious messages.

Reporting Suspicious Emails

If you receive an email that looks like it's from PayPal but seems suspicious, do not click on any links, download any attachments, or reply to the message. Scammers are very good at creating fake emails that look authentic.

Instead, you should forward the entire suspicious email to phishing@paypal.com. Forwarding the whole message, including the header information, gives PayPal's security team the information they need to investigate the source.

After you have forwarded the email, you should permanently delete it from your inbox to avoid accidentally clicking on it later.

Reporting Suspicious Text Messages (SMS)

Scammers also use text messages to execute phishing schemes. If you receive an unusual text message or SMS that claims to be from PayPal, do not reply or tap on any links.

You can report these messages by forwarding them to PayPal. The process is simple:

1. Tap and hold on the suspicious message bubble.
2. In the options that appear, tap "More."
3. Select the forward arrow that appears.
4. Enter phishing@paypal.com as the recipient.
5. Tap the send arrow to forward the message.

This sends a copy of the message to PayPal's security team for investigation. Afterward, you should delete the text and block the number to prevent further contact.

Essential Scam Prevention Tips for Depop Sellers

The best way to handle a paypal scam depop sellers face is to prevent it from ever happening. By adopting a set of secure practices, you can significantly reduce your vulnerability to fraudulent activity. Here are the most important prevention tips every Depop seller should follow.

1. Keep All Communication and Transactions On-Platform

This is the golden rule of selling on any marketplace. Scammers will almost always try to lure you off the platform to communicate or transact. They might ask for your phone number to discuss the sale on WhatsApp or suggest a direct payment via CashApp, Venmo, or PayPal's friends and family option. Never take conversations or transactions off of the marketplace. Always communicate with buyers and accept payments directly through the Depop app using the "BUY" button.

2. Never Share Personal Information

Protect your personal data at all costs. You should not share your email address, phone number, or any personal account details with a buyer. A legitimate transaction on Depop does not require this information. Scammers use your email to target you with phishing attempts or to initiate scams like the "Reset Your Credentials" hack.

3. Guard Your Confirmation Codes

Never, under any circumstances, provide a confirmation or verification code to anyone. Whether it's for your Depop account, email, social media, or PayPal account, these codes are for your use only. If someone asks for one, it is a massive red flag. They are trying to hack your account.

4. Document Everything Before Shipment

Protect yourself from false claims that an item was not as described or was damaged. Before shipping, photograph all items extensively. Take pictures of the item from all angles, including any tags. For added proof, photograph the item next to the shipping label and a piece of paper with the buyer’s name and the date. This creates photographic evidence of the item's condition at the time of shipment.

5. Refuse All Gift Card Requests

Gift cards are a common tool for scammers because they are untraceable, like cash. If a buyer asks you to buy with a gift card, you should absolutely not do it. Be wary of any request that involves gift cards, such as a buyer offering to overpay for an item if you include a gift card in the package. These are always scams.

6. Trust Your Instincts

If a request or situation feels off, it probably is. Decline any requests that you are uncomfortable with or that do not sound right. A legitimate buyer will not pressure you into a strange or complicated transaction. Don't be afraid to say no to a sale if you feel uneasy.

7. Block and Report Suspicious Accounts

If you encounter an account that has demonstrated legitimate fraudulent activity or is making inappropriate requests, do not just ignore it. Use Depop's tools to block and report the account. This helps protect the entire community from scammers.

8. Contact Depop for Help

If you are ever unsure whether you are being scammed, you can always reach out to team Depop. Use the Help portal on their website or app to describe the situation and seek advice or assistance. Their support team can provide guidance on how to proceed safely.

Conclusion: Secure Your Business and Focus on Growth

Navigating the world of online reselling on Depop can be incredibly rewarding, but staying vigilant against Depop PayPal scams is essential for long-term success. By understanding how common scams like the "Reset Your Credentials" hack work, knowing the specifics of Depop's protection policies, and following strict prevention measures, you can create a secure foundation for your business.

Always keep transactions on the platform, never share personal information or confirmation codes, and document everything meticulously. When in doubt, trust your instincts and report any suspicious activity to both Depop and PayPal.

As your business grows, managing these details can become a full-time job in itself. This is why successful resellers turn to powerful tools to streamline their operations. With our platform, you can automate your listings, manage inventory across multiple marketplaces, and access powerful analytics to grow your business faster. By handling the administrative burden, we free you up to focus on what truly matters: sourcing great products and building your brand securely.

Are you ready to stop juggling spreadsheets and start scaling your resale business with ease? Start your free trial today and see how Reeva can transform the way you sell.