Topic: scammed when selling bitcoins on ebay (Read 10618 times)

Ebay Paypal invite fraud by not securing paypal with double authentication.

Do a quick search on ebay and you will see Bitcoins selling for high markups some up 100% or more. Then ask yourself why is this happening? Because the scammers will pay more for an item they know they will reverse.  Why would they be able to reverse the transaction you ask ? Because the criminals know Paypal does not have double authentication like Authy, Google Authenticator, or Yubico, set up. Thus whoever is in charge of the money at Paypal/Ebay is being negligent because they could fix their problems that simply.

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They say their accounts got compromised and I believe it's a different story from just getting scammed by fake companies, or if you paid with a credit card through PayPal..

how'd the buyer get paypal to reverse the charge for a non-tangible product? they told me i was shit outta luck when i got scammed outta $34 the other day...

I got fooled on eBay before, but it doesn't happen just with PayPal.
I worked in retail for the last couple years and understand why companies do that.
All they care about is customer service, overly satisfied customers so they will do anything to keep customers happy, and they will come back and shop more/ use their services more. 

For example, in stores customers would buy lots of items when they are on sale (let's say 40%), then they will return it without the receipt at original price and get a gift card for the amount they spent + 40% extra. Then sell it on eBay, = profit..
It's like getting free credits to shop, less hurtful bit still...

I also got scammed. It is just ridiculous how paypal/ebay are handling business.

Read this also "How to Cheat eBay Sellers and Scam PayPal" story: http://benchmarkreviews.com/index.php?option=com_content&task=view&id=18417&Itemid=8

After reading all these stuff. I got very frustrated for not reading these before.

Making private information public, is not a good way to go. BUT their usernames is PUBLIC. So, I have made a database to exposure and check their usernames with a link to their profile on Ebay.

Any one wanting to check or exposure their username and support this database, please post them at http://3lay.com 

micko1911, Never disclose someone's personal information. I am not sure where you are located, but in Australia this can carry up to a $250,000 fine for individuals. Most country's around the world have very high penalties for doing so.

The only way to sell bitcoins safely is to use a method of payment that does not allow chargebacks. This is why most eBay sellers sell only a small amount of coins at a time and charge an extremely high premium to accept PayPal.

i see that paypal is bad from other mistakes. wise man learns from other mistakes

I have a lifetime ban because someone stole my identity six years ago and created a PayPal account. They didn't even rip PayPal off. (PP-001-530-046-635)

I've tried to work this out with PayPal about a dozen times over the past four years. The way PayPal has dealt with this incident has been brutally dishonest. For example, I filed a BBB complaint. PayPal gave absolutely no information in any of their responses until the very last one, the one that I don't get to respond to, in which they made all kinds of new, nonsensical accusations. Needless to say, without me having any opportunity to respond to these, the BBB found PayPal's actions reasonable.

Lack of access to PayPal has meant no access to eBay. For a variety of reasons, this has been incredibly inconvenient for me personally.

I even escalated to the California government agency that monitors their compliance with regulations associated with their money transfer license. They promised to look into my complaint and contact PayPal about it. They responded to me that they "received a satisfactory response from PayPal" and wouldn't answer me further. Draw your own conclusions.

The most detail I've ever gotten from PayPal is this: "We have detected that these accounts were used to purchase from a website in violation of our Acceptable Use Policy. The severity of the violation is such that any linked accounts will be closed."

In my mind at least, PayPal is pure evil.

Problems still exist with this scheme.

Buyers (even real ones) don't read the item description and you end up with people who do not meet your requirements. eBay's automatic buyer restrictions do not allow you to limit based on feedback score or membership duration.

For these buyers I offer to allow them to initiate a cancel item request or receive their bitcoin purchase on a CD. As long as you ship their item to you, you *might* be covered by PayPal's seller protection. If they initiate the cancel item request, you get your final fee value back but not the item listing fee.

I send them a bitcoin address and a private key. I even spiffy it up with a vanity bitcoin address.

I sell bitcoins on eBay in constant in fear of chargebacks. it's the nature of the game. It's not evil as some people suggest. Many of you were quite hard on the original poster. While I feel your separatist morality when it comes to money... the fact remains that we all have to eat... and own kick ass computers. Don't judge lest you be judged.

Love
FLHippy

I suppose because i've never seen paypal going to court over that amount of money. I'm curious as to what their process would be, and how they would react if challenged to take me to court, i think I will test this out, can't cost me anything if I get a friend to do a chargeback.

nah was a few years ago.

Im no lawyer or anything but why would it be interesting ?

That would be interesting to take to court. In fact, i'm almost curious enough to have a friend try a chargeback to test how their system works.

I don't suppose you've still got a copy of the letter?

I can confirm 100% if you have no funds paypal will send debt collector after you.
Some random lawyer/collector sent me a letter to collect my ~$4 I owed.... And that was after not paying for only like a month....

Im in AUS aswell.

As much as I dislike paypal it did used to be a reliable way for me to acquire coins a while back.  I avoid it today though, of course.

Not if my paypal isn't linked to my bank account, so no direct debit options, and there are no funds in my account because I withdraw all funds as soon as they hit paypal. I wonder what would happen then?

edit: also, there are no credit cards attached to my paypal for them to charge either.

A buyer can still pay for the item via PayPal with a credit card payment, and then dispute the credit card payment with the bank. PayPal will yank the money right back out of your PayPal account. This can happen months later, as you can see here: http://blog.unibulmerchantservices.com/visa-chargeback-reason-codes-and-time-limits/.

I disagree. I've posted this in another thread, but this is relevant: I sell BTC on paypal and ask that the buyer select "personal" and "gift". The buyer cannot chargeback then. Obviously the risk is on the buyer, and this reduces my sales somewhat, but I am focusing on local sales in my home town to establish trust.

I've conducted about 40-50 transactions and haven't had a problem with paypal yet, though i'm not saying it won't happen at some point.

Ebay doesn't vouch for any currency exchange listing
since bitcoin is a currency,its normal to favour the buyer in dispute due to sellers non-concern of TOS

Wow I guess that's true.  I was wondering this a few weeks ago but since I didn't see any ads on the site I figured they didn't do advertising.

Now that I click around, they do seem to offer targeted advertising.  I wonder whether they would accept a Bitmit ad? 

It would be funny for someone to inquire about advertising Bitcoin and Bitmit, but only to target E-Bay sellers that have been back-charged by Paypal.    Or maybe the ones that don't use it at all.  Be sure to record it if you do, since the antitrust authorities may be interested and it would be hilarious regardless.