Is PayPal Safe? User Tips & Security Measures in 2024

Sending money through PayPal remains one of the easiest ways to complete an online store’s checkout without fumbling around for cards. It also allows shoppers to spread payments of higher-priced goods over four months—all within a few clicks.

Tech-savvy consumers who pride themselves on their cyber hygiene will use PayPal because it allows them to avoid sharing their card numbers with multiple sellers.

These are just a few reasons why 426 million active PayPal Users and 3.21 million websites accept it as a payment method, fueling a $1.53 trillion payment volume representing 42% of online payment processing worldwide.

After hackers accessed almost 35,000 PayPal accounts in a December 2022 breach, consumers and businesses were left to ask the question, how secure is PayPal?

Table of Contents Table of Contents

1. Key Takeaways
2. Is PayPal Safe? PayPal Security & User Safety Features
3. PayPal Security Risks & Concerns
4. PayPal Compared to Other Payment Methods
5. User Tips for Staying Safe on PayPal
6. The Bottom Line
7. FAQs
8. References

Show Full Guide

Table of Contents

1. Key Takeaways
2. Is PayPal Safe? PayPal Security & User Safety Features
3. PayPal Security Risks & Concerns
Show Full Guide
4. PayPal Compared to Other Payment Methods
5. User Tips for Staying Safe on PayPal
6. The Bottom Line
7. FAQs
8. References

Is PayPal Safe? PayPal Security & User Safety Features

It’s widely accepted that PayPal is one of the most secure payment platforms. The platform has many known security features, one of which is credit-card-like purchase protection.

This feature allows users to settle any dispute within 180 days of the agreement over any transaction or payment they may have made.

However, the credential stuffing hack that impacted nearly 35,000 users in 2022 made many question PayPal’s safety.

But if you look beyond the scary headlines, PayPal was not breached. The cruel twist in this story was that the event resulted from breaches at other services and then using these same credentials on other big sites where many people have accounts, such as PayPal, Amazon, and Netflix.

The primary issue is that many users reuse their usernames and passwords. This could have been avoided if the victims had a unique password on every site and had activated 2-step verification as an additional option.

Implementing these security measures ensures that PayPal remains one of the safest ways to send money securely via the internet.

So, is PayPal safe to use in 2024? Let’s explore what security measures it has.

End-to-End Encryption

PayPal uses end-to-end encryption to secure every transaction. This means that data is encrypted from the time it leaves a device until it reaches its destination and prevents sensitive information from being intercepted.

Since PayPal offers 128-bit SSL encryption today, its transaction security offers enhanced protection. However, the industry is slowly migrating toward 256-bit SSL encryption for more robust security measures.

PayPal Security Key

The PayPal Security Key increases security by requiring a dynamic six-digit passcode in addition to your login credentials.

This passcode can be sent via SMS to your phone, physically issued on a security card or token, and activated through your account settings in the general section of the PayPal website.

Browser Integrity Checks

Software updates often appear at the most inconvenient times, and many users admit to delaying them for as long as possible. However, outdated software and apps increase the risk of hackers using system vulnerabilities.

PayPal protects its customers by performing browser integrity checks. If your browser is outdated or doesn’t meet its security requirements, it will only allow access to your account once the security updates have been installed.

Two-Factor Authentication

If you are guilty of using the same password on multiple sites, two-factor authentication can add another layer of defense. Paypal 2-step verification works with a smartphone verification app such as Google Authenticator, Authy, or Microsoft Authenticator, and it will lock out attackers who have access to your breached username and password but not the code generated by the app every 30 seconds.

This feature can be found by navigating to settings, security, and setting up 2-step verification. Whenever you or anyone else attempts to log in to PayPal, they will require your username, password, and the unique code from the authenticator app.

PayPal Security Risks & Concerns

Last year, online scams targeting individuals aged 60 and older caused over $3.4 billion in losses in 2023.

This stat highlights the critical need for reliable scam prevention strategies, especially for vulnerable populations.

PayPal is known as a trustable and legitimate way to ensure safety when sending money, but users also need to be aware of how they can avoid some of the most common scams.

Phishing Scams

PayPal phishing emails can often be identified by an opening line that typically contains impersonal greetings like “Dear user” or your email address instead of your full name.

Although it might look like a typical PayPal email, the fraudster aims to trick you into downloading a virus-ridden attachment or direct you to a fake PayPal website where it can steal your credentials.

Phishing emails can also create a dramatic false sense of urgency, causing you to make an irrational and rushed decision. Typical examples are account closure warnings, payment notifications, and overpayment claims.

Fraudulent Transactions

Is PayPal Safe for Buyers?

Although PayPal ensures buyers’ protection, no one is 100% safe from being tricked by scammers. Invoice and money request scams often involve receiving requests for products or services you didn’t order and alarmist messages asking you to contact fake customer service numbers.

Always verify such requests through the PayPal website or app and never the suspicious email.

Is PayPal Safe for Sellers?

According to PayPal’s seller protection policy, “If you are sent an unauthorized payment – for example, from a hacked account – or a buyer claims through PayPal’s Buyer Protection Program that they didn’t receive their item, our Seller Protection policy may cover you for the full amount of the payment on eligible sales.”

However, there are other cases in which a seller might fall victim to scammers. For example, be wary of overpayment scams, where fraudsters send more money than required and ask you to wire back the difference; legitimate buyers won’t overpay.

Some cybercriminals will also use a stolen credit card to transfer funds to your account and follow up with an email asking you to return it.

Should you notice any suspicious payments coming in or out of your account, always visit the official PayPal website away from the email and call them directly.

Frozen accounts

From supporting the Canadian Truckers and a parents group trying to keep schools open to Palestinians unable to access PayPal or accusations of spreading misinformation, PayPal has gained a reputation for cracking down on political dissent in recent years.

If you purchase items or sell products or services, PayPal will not cause you any problems.

However, those who create content that challenges the current political narrative are increasingly sharing stories about how user policies have been used to freeze accounts and seize all funds.

Close you PayPal account. Their new Policy allows them to deduct $2500 from your account for misinformation.

— Tim Kennedy (@TimKennedyMMA) October 8, 2022

PayPal Compared to Other Payment Methods

There are hundreds of alternatives to PayPal, offering consumers and businesses various payment options.

The best one for you depends on your unique needs. For example, do you want to make international payments and receive payments between bank accounts? Business, volume of transactions, transaction fees, and monthly charges will also be determining factors in choosing the best payment method.

Here is a table comparing some of the leading payment platforms.

PayPal vs. Credit Cards

Is PayPal safer than credit card payments? From a safety standpoint, both PayPal and credit cards provide strong safeguards against unauthorized charges and offer recourse for issues like non-delivery or damaged goods.

PayPal secures transactions with encryption and extends purchase protection whether you use a credit or debit card to fund your account.

Credit cards, protected under the Fair Credit Billing Act, also defend against unauthorized charges and billing errors.

However, they differ in additional benefits like extended warranties and theft protection. Using a debit card directly online poses higher risks with fewer protections.

Choosing between PayPal and credit cards for online purchases depends on personal preference and specific perks such as rewards or security features.

PayPal vs. Other Digital Wallets

When comparing PayPal with other digital wallets like Google Wallet or Apple Wallet, much will depend on what smartphone and ecosystem you are using.

Google Wallet and Apple Wallet have allowed users to dispose of their physical purses and wallets in the name of convenience. Debit and credit cards and even airline boarding passes are now a swipe away.

PayPal often has the edge regarding the sheer number of mobile apps and websites that accept it, making it one of the most reliable solutions, but that will change as more stores add mobile wallets.

User Tips for Staying Safe on PayPal

Most of us have perfected at navigating real-world interactions with streetwise caution, but we are guilty of not taking this vigilance online. Whether using PayPal is safe or not often comes down to your personal habits.

• Protecting your PayPal account from fraud can be as simple as looking out for suspicious emails or pressure-filled communications that urge immediate action; these are nearly always signs of a scam.

• Further enhance your safety by using strong, unique passwords for your PayPal account and enabling two-factor authentication, which adds a security layer.

• Finally, stop skipping “update later” on the security updates that keep your devices protected.

The Bottom Line

Despite the high-profile credential stuffing attack in 2022, PayPal’s fraud monitoring, encryption, and two-factor authentication features have helped maintain its reputation as a secure platform.

For users, the combination of convenience, wide store acceptance, and security makes PayPal a reliable choice for buyers and sellers.

However, improving your cyber hygiene will complement PayPal’s security measures and protect your online financial activities.

FAQs