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New AI-Powered PayPal Scam Tricks You Into Calling a Fake Support Line

PayPal warns of a new AI-powered scam tricking users into calling fake support lines. Learn how to protect yourself.

Jul 15, 2025
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In a recent alert reported by WGAL, PayPal warned that scammers are now using AI tools to generate emails that appear more legitimate than ever.

These fake messages often claim a recent purchase, like a $700 iPhone or $599 worth of Bitcoin, and are addressed to “Dear PayPal Customer.” The emails typically include a phone number, which, if called, connects victims to scammers pretending to be PayPal representatives.

Victims are then asked to download what appears to be a PayPal-branded support tool. But in reality, it grants scammers full access to the victim’s device.

Smart scams, smarter protection

To combat this growing threat, PayPal has unveiled a dynamic, AI-driven fraud alert system designed to intercept scams before money is lost. Unlike older systems, this one adapts based on real-time risk signals and transaction history, offering tailored warnings to users.

“We’re combating AI used by bad actors with more intelligent AI used for good,” Yigit Yildirim, senior vice president of Global Fraud Prevention at PayPal, said in a statement per ZDNET.

The system is designed to prevent “alert fatigue,” a phenomenon where users become desensitized to repeated generic warnings. Instead, PayPal now offers dynamic alerts based on the level of risk involved in a transaction.

As explained in ZDNet, if the system flags a minor risk, it may issue a gentle warning to the user. For serious threats, it can block the transaction altogether.

Advice for staying safe

In addition to its AI-powered detection, PayPal and its sister platform Venmo are also offering advice to users, especially during the busy summer season when ticket scams are on the rise.

Some key tips include:

  • Use purchase protection: PayPal and Venmo offer protection on eligible purchases. Avoid sending money using “Friends and Family” for goods or services.
  • Buy from trusted sources: Stick to verified sellers and avoid social media listings or unverified platforms.
  • Avoid odd payment requests: Scammers often ask for payments via gift cards, wire transfers, or cryptocurrency.
  • Stay alert to red flags: Generic greetings, fake urgency, and odd links are all signs of fraud.
  • Report suspicious activity: Forward scam emails to phishing@paypal.com and contact law enforcement if you’ve been scammed.

As fraud becomes more deceptive, tech companies are leaning into smarter, more adaptive tools to protect users. But the first line of defense still begins with awareness. With fraud losses topping $12.5 billion in 2024, according to the Federal Trade Commission (FTC), the stakes have never been higher.

AA

Aminu Abdullahi is an experienced B2B technology and finance writer. He has written for various publications, including TechRepublic, eWEEK, Enterprise Networking Planet, eSecurity Planet, CIO Insight, Enterprise Storage Forum, IT Business Edge, Webopedia, Software Pundit, Geekflare and more.

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