PayPal Prenote Scam - Prenotification and Zero-Dollar Deposit

Question

Online Threat Alerts (OTA) https://www.onlinethreatalerts.com/

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an anonymous userhttps://www.onlinethreatalerts.com/users/#an-anonymous-user · Answer 1 · July 1, 2022

I just got a "DIRECT DEPOSIT PAYPAL PRENOTE" $0 transaction dated 7/1 in my bank account (which happens to be linked to PayPal). It's not listed under Activity in my PayPal account. If it actually DOES originate from PayPal, and not some third party with my bank account info, then PayPal should show it under Activity to make clear that they're aware of it.

infohttps://www.onlinethreatalerts.com/users/#info · Answer 2 · June 30, 2022

Scammers create PayPal accounts and link them to victims’ leaked banking information. Once payment information has been linked to an account, the scammers will normally make several test withdrawals — these appear as “Web PayPal Prenote” on the victims’ bank statements.

The test withdrawals will often be for $0, but they may be as much as a few dollars. What the scammers are doing by making these small withdrawals, is they are testing the legitimacy of the leaked banking information, and also hoping to not arouse too much suspicion. After all, it’s tough to get too concerned about a transaction for $0, even if you don’t recognize it.

However, once the scammers are sure the leaked banking credentials are legitimate and PayPal seems to be letting the withdrawals go through without issue, they will begin to make much larger withdrawals, potentially completely emptying victims’ bank accounts in the process!

How to Stay Protected

If you’ve noticed unusual “Web PayPal Prenote” transactions on your bank statement, the first thing you need to do is contact your bank. However, please be aware that you may end up having to close your account and set up another because once data is compromised, it’s compromised forever.

These types of scams really highlight how dangerous and costly it can be to have your personal and financial information leaked. It’s not always possible to trace the origin of a leak, but compromised data is often shared by cybercriminals on the dark web and underground web forums.