BBB Scam Alert: Paypal Impostors Steal Thousands from Texas Residents

BBB Scam Alert: Paypal Impostors Steal Thousands from Texas Residents

amInnovations in payment processes have introduced a wide range of opportunities for
legitimate businesses to market their products and services to a broad audience. The
convenience and ease of peer-to-peer (P2P) payment applications provide a direct, cost-
effective method to receive funds from customers for businesses of any size. However,
unlike traditional financial institutions such as a bank or credit union, P2P apps do not have
a physical location its users can visit to talk directly with a representative, and the focus on
digital interactions provide an opportunity for scammers to impersonate representatives to
carry out a range of schemes. Recently, reports to BBB Scam Tracker from Texas residents
have brought a new PayPal impostor tactic to light. Using a high-tech approach, some
victims of this scam report losing over $80,000 under the assumption they are disputing an
unauthorized charge.

How the scam works:

Victims receive what appears to be a confirmation email from PayPal for an expensive
product, typically over at least $1,000. The email closely mimics a legitimate PayPal
confirmation, including the design, PayPal logo, order number, and shipping details from a
supposed supplier. In multiple places in the email, bolded or red text emphasizes a call-back
number to dispute the transaction. However, the phone number provided does not connect
the victim with PayPal but with an impostor that begins to guide them through the next
steps.

The impostor directs the victim to download and run a Reason ReFill Sound Bank File (RFL)
to reverse the pending charge. RFL files (e.g. FileName.rfl) are commonly used within the
music industry to compress and transfer samples, songs and patches. However, their use
also extends to storing databases or running virtual prototypes and simulations. The general
public’s unfamiliarity with the RFL file type assists the scammer by requiring the victim to
rely more heavily on their guidance, such as helping the victim to download a program that
can read and open an RFL file as opposed to more widely-used file extensions such as
Microsoft Word (e.g. FileName.docx) or Excel (e.g. FileName.xlsx).

After opening the file, the victim encounters a dashboard that appears to be designed to
handle their reimbursement request. Following the impostor’s directions, they input the total
cost of the transaction included in the invoice and their banking information. Although the
dashboard appears to be legitimate, it is designed not to recognize decimal points and
seems to credit the victim’s account with an excessive amount of money when submitted.
For example, a $1,999.99 pending charge becomes a $199,999.00 account credit. Using
fear or coercion, the scammer directs the victim to make wire transfers (or other
unprotected method) from the credited account to return the ‘excess’ funds. Often, they will
ask for the total payment to be provided through a series of smaller ones or claim they did
not receive a previous transfer. In either case, the victim is out the amount of money they
‘returned’ when the pending credit is detected as fake and removed from their account.
How to avoid

Verify PayPal purchase history and details using the official app or going directly
to the website. Avoid clicking on any links in the email itself that claim to direct you to
PayPal, as they may send you to a lookalike website instead. Be wary of phone numbers in
unsolicited emails, as they may connect you with an impostor.

Research the suppliers’ address. Scammers use well-known sellers in fake invoices and
often fabricate business addresses or use a residential address in their place. A quick
internet search of that address can help determine if it is a physical location associated with
the product supplier. For example, some email screenshots victims provided to BBB showed
an Amazon supplier located at a Farland Avenue address in San Antonio, Texas. A quick
internet search will find no Amazon supplier at the address and, even more telling, no street
in San Antonio named Farland Avenue.

Check the email address the invoice is coming from. Look at the domain and name of
the email address that sent the invoice. Official communications should come from an email
account associated with the business rather than a personal or generic domain. Be wary of
immediately trusting an email that uses an official email address as the Name of the
account, as these can be fake. The full email address is often included in parentheses,
brackets, or delimiters after the name.

Never reimburse excess funds through another payment method. Common in fake
check scams and fraudulent employers, be wary of returning overpaid funds provided via
one payment method through another. Scammers often ask for immediate reimbursement
before your financial institution can verify a pending transaction. As much as possible, avoid
returning excess money through immediate and direct methods such as gift cards, wire
transfers, and unprotected mobile app transactions. Scammers know that these methods
are fast and challenging to reverse.

Double-check the URL and domains. Scammers often switch around domains and
subdomains to impersonate a business. For example, they may change PayPal.com to
info.PayPal.com, Pay.Pal.com, PayPal.Returns.com, or any other variation. Additionally, links
in an email may direct you to a completely different URL than the one highlighted. Use only
known and trusted methods to communicate with businesses, such as their official mobile
app or typing the website's URL directly into your internet browser.
For more information about how to spot and avoid impostors and other scams, visit
BBB.org/AvoidScams.

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Cheri represented us on the purchase and close of our home to an area we were new to. She was very knowledgable and helped us to get settled along the way. Pleasure to work with! Very well respected in her field of work.~ Koena T.
Coastline Properties is a very qualified Real Estate Agency in Corpus Christi, TX. They have great knowledge of the market, are proficient and very personable. I Have recommended several clients to them with like results.~ John L. Sullivan
Recently I asked my 10 closest friends who they would vote for as North Padre Island''s top Realtor; emphatically every single one of them came back and said "Cheri Sperling." This is why I trust Coastline Properties for all my real estate transactions.~ Alex K.
Absolute Best Corpus Christi Realtor!! Cheri Sperling from Coastline Properties came to our rescue, and we finalized the deal that closed on 04/09/12. Her impeccable communication skills helped us to truly create a win/win transaction. Her patience, commitment to people’s feelings and knowledge of Real Estate Law make her an outstanding Realtor. After dealing with a horrible Commercial Realtor trying to sell our business building that just wasn't going anywhere. We called Cheri, today I feel so blessed with the deal that she helped us negotiate. Thank You for everything Cheri....you are THE BEST!~ Astoria Properties, LLC
It is with our utmost privilege we endorse Coastline Properties! We have known Cheri Sperling for at least 15+ years. As a real estate professional and dear mutual friend! Thanks to Cheri we have been avoided many costly mistakes, in connection with the various houses she has shown us over the years. Her expertise and valuable advice, has prevented us numerous unnecessary expenses that could have had traumatic lasting affects!~ William & Norma Twijnstra
In the 37 years that I have lived in Corpus Christi, I have been involved in the purchase or sale of Real Estate 16 times. In the last three, my wife and I have been represented by Cheri Sperling of Coastline Properties. I highly recommend Cheri Sperling and feel she is the finest realtor I have ever had the pleasure of dealing with. She is knowledgeable, honest, energetic and dependable. Not only does Cheri know all of the ins and outs of the local real estate market and the applicable rules and regulations, she is willing to always go the extra mile to make the deal work and take the burden off of her client in the process. If I ever find myself in another real estate transaction in the future, I will make every effort to have Cheri Sperling represent me.~ Michael O’Reilly, P.C.
Cheri, Thank You for visiting with me this morning. I learn much from you. It is always so pleasant to walk into Coastline as I am always warmly greeted, the office is very inviting and full of helpful information for your clients. I am grateful for you putting 14318 Caribe Dr. on your calendar for October 9. I am excited about you and the agents seeing every nook and cranny that this amazing home has to offer.Have a great weekend..~ Mary Melick Real Estate
Cheri, We will always have fond memories of our time in Corpus Christi and our relocation experience because of you. You have done an outstanding job not only in buying and selling our house but throughout the entire relocation process creating a seamless transition. If we ever return to the Corpus Christi area, we know who to call. Thank you so much!~ Ken, Padre Islander
Thanks to Tara Gallaspy for doing such a great job on our recent home sale! It was nice to leave the job in such a capable person's hands and not have to worry about the myriad of details that take place in order to finalize a sale. Our house had a contract one week from listing, and the closing went off early without a hitch. Tara also went above and beyond between those two events. I would never hesitate to recommend her to a friend.~ Shannon Trial, Padre Islander