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Paypal - Unauthorized Account Activity

by VinnyBock
18 replies
Quick question... :confused:

This morning, an affiliate made a sale for me though W+. I just got any email from Paypal that says "An unauthorized account activity claim was recently filed against the following transaction"...

I contacted the buyer immediately to let him/her know that I'm willing to do what ever it takes to get it straightened out and asked for more info...

Any idea why this would happen?
Has anyone ever experienced something similar?
#account #activity #paypal #unauthorized
  • Profile picture of the author Ripster
    Either someone accessed the buyer's PayPal account or they just want their money back.
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  • Profile picture of the author Sarevok
    Not sure dude.

    But this is why I rarely, and I mean RARELY accept affiliates.

    (My fear is that the affiliate sale was fraudulent).

    :/

    Contact paypal and ask them what the problem is?
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    • Profile picture of the author VinnyBock
      Originally Posted by Ripster View Post

      Either someone accessed the buyer's PayPal account or they just want their money back.
      I considered this, maybe the buyer wants a refund without having to ask for it?
      It would be my first...

      Originally Posted by Sarevok View Post

      Not sure dude.

      But this is why I rarely, and I mean RARELY accept affiliates.

      (My fear is that the affiliate sale was fraudulent).

      :confused:

      Contact paypal and ask them what the problem is?
      Maybe I should be more careful with my affiliate screening process... I always check them out, and as long as they have a good # of posts here on the forum I usually approve them...

      Thanks for the heads up...
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    • Profile picture of the author izycdb
      Ive had that before from our dreadlock supply company. Someone made a purchase in the house. The owner of the paypal account didnt want that person buying the product from their paypal account so they told paypal it was unauthorized. So, my guess is someone got a hold of someone elses paypal account and password and made the purchase.
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  • Profile picture of the author ddev
    Yes, it happens (not always, don't panic) but getting a chargeback would be worse so don't feel bad for that.

    Did you know where the sale came from? unfortunately, there are some countries which are known for having big levels of fraud.

    If you're using wordpress, you can search "PayFense" on the warrior forum (being sold through the wso section).

    Basically, the plugin allows you to block people from some countries (countries where paypal doesn't operate - if a sale comes from an ip from that country it's a red flag for the paypal people) or automatically process those sales through an alternative payment processor (like ClickBank which accepts people from more countries).

    And you can also blacklist serial refunders (so they don't buy more products from you in the future) etc.


    Update: Missed that it was from Warrior+: The amount of that purchase may have been temp. deducted from your paypal account, right? The logic says that the money should be deducted from the affiliate account (not yours) but it doesn't work this way when PayPal takes some action.

    Make sure to refund the sale to end with that. If you can do it through W+, go ahead through it, (otherwise do it from your paypal account). Then, if the affiliate is legit and has funds, the funds will go from the affiliate account to your account (you shouldn't lose money). Pay close attention to the affiliate.

    Regards,

    Diego.
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    • Profile picture of the author AidanShy
      It is really strange one, I never heard about such matter.
      Please also post the whole story after that....!
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      • Profile picture of the author VinnyBock
        Originally Posted by ddev View Post

        Yes, it happens (not always, don't panic) but getting a chargeback would be worse so don't feel bad for that.

        Did you know where the sale came from (unfortunately, there are some countries know for having big levels of fraud)?

        If you're using wordpress, you can search "PayFense" on the warrior forum (being sold through the wso section).

        Basically, the plugin allows you to block people from some countries (countries where paypal doesn't operate - if a sale comes from an ip from that country it's a red flag for the paypal people) or automatically process those sales through an alternative payment processor (like ClickBank which accepts people from more countries).

        And you can also blacklist serial refunders (so they don't buy more products from you in the future) etc.

        Regards,

        Diego.
        Thanks for your input Diego...

        The only reason it made me nervous at firsat is because in 3-4 years of having an active PP account, I've never had a single dispute...

        The sale was made from the WSO forum via an affiliate on W+, so I'm going to see how it plays out. If it is just a customer that wants a refund, I'll ask them to request it through W+ so the affiliate and I can take care of it... I don't mind a chargback, or eating the affiliate commission, I just don't want my good standing PP account to get its 1st blemish...

        Originally Posted by AidanShy View Post

        It is really strange one, I never heard about such matter.
        Please also post the whole story after that....!
        Will do Adrain...
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  • Profile picture of the author Alex Blades
    Sounds like fraud, NEVER allow affiliate's you don't know. Refund him and blacklist him as an affiliate, ASAP!!!
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    • Profile picture of the author Devin X
      Banned
      Originally Posted by Alex Blades View Post

      Sounds like fraud, NEVER allow affiliate's you don't know. Refund him and blacklist him as an affiliate, ASAP!!!
      Agreed, I've recently dealt with a lot of affiliate fraud. I'm no longer using JVZOO because their affiliate system is terrible. Why? Affiliates won't promote unless they're instantly approved, but that's what fraudulent affiliates are counting on. So I'm done with them. I imagine W+ is much the same? Regardless, I feel your pain OP.
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      • Profile picture of the author Willie Crawford
        Originally Posted by TheRealDudeman View Post

        Agreed, I've recently dealt with a lot of affiliate fraud. I'm no longer using JVZOO because their affiliate system is terrible. Why? Affiliates won't promote unless they're instantly approved, but that's what fraudulent affiliates are counting on. So I'm done with them. I imagine W+ is much the same? Regardless, I feel your pain OP.
        Actually, JVZoo allows you the option of whether you approve affiliates
        for instant payments, or for delayed payments. W+ only allows for
        instant payments, if I'm not mistaken.

        "Some" affiliates won't promote unless you offer instant payments, but
        many others will.

        In any event, you should really never approve an affiliate unless you
        "know them" or feel very comfortable with whatever indicators you notice
        in their profiles, etc.

        I've worked product launches where we disapproved more affiliate
        requests than we approved. It's not really a numbers game anyway
        because most affiliate register and then do very little if any actual
        promoting. So, you're better off with fewer affiliates that you feel
        comfortable with, and can get more of a commitment out of.

        In response to the original question, I have seen this several times.
        I every case that I've seen, I deduced that it was fraud on the
        part of the customer, but opted to just issue the refund rather than
        spend too much time disputing it... at the same time explaining to
        Paypal what I was certain had happened.

        Willie
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  • Profile picture of the author ddev
    Agree with you. The "PayPal Instant Payments" for affiliates has many risks. If possible, it's better to leave paypal to handle your own sales (those that come through SEO or your own campaigns) and switch to ClickBank (or another platform) for visitors that come through affiliates.

    Instant Payments are good if you know the people that you're approving (or if your good at ESP).
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  • Profile picture of the author sbucciarel
    Banned
    My guess is that it's a fraudulent affiliate and most likely done with a stolen credit card. Pretty common on W+ and JVZoo. Had six chargebacks roll in using JVZoo, all due to several fraudulent affiliates. Never approve an affiliate you don't know well. There are quite a few threads on WF on this topic. Here's mine.

    http://www.warriorforum.com/main-int...maybe-not.html
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    • Profile picture of the author VinnyBock
      Originally Posted by sbucciarel View Post

      My guess is that it's a fraudulent affiliate and most likely done with a stolen credit card. Pretty common on W+ and JVZoo. Had six chargebacks roll in using JVZoo, all due to several fraudulent affiliates. Never approve an affiliate you don't know well. There are quite a few threads on WF on this topic. Here's mine.

      http://www.warriorforum.com/main-int...maybe-not.html
      Thanks for your input, and the for pointing out a similar thread...

      I don't think it was a stolen credit card because the buyer had a verified paypal account...

      I contacted the buyer and the affiliate, I'm going to give the affiliate 12 hours to reply, if he doesn't reply by then, I'll deny him/her...

      Because it was a verified PP account, I'm thinking it may be the buyers way of requesting a refund without actually having to request it, even though refunds suck and it would be my first, I think that's the best case scenario at this point...
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      • Profile picture of the author sbucciarel
        Banned
        Originally Posted by VinnyBock View Post

        Thanks for your input, and the for pointing out a similar thread...

        I don't think it was a stolen credit card because the buyer had a verified paypal account...

        I contacted the buyer and the affiliate, I'm going to give the affiliate 12 hours to reply, if he doesn't reply by then, I'll deny him/her...

        Because it was a verified PP account, I'm thinking it may be the buyers way of requesting a refund without actually having to request it, even though refunds suck and it would be my first, I think that's the best case scenario at this point...
        They could have just as easily used a phished Paypal account as a stolen credit card, so just be careful approving affiliates. On JVZoo, if I still used them, I would never pay instant commissions unless I really knew the affiliate. W+ I don't think has a delayed commission option, which is unfortunate.
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  • Profile picture of the author WillR
    I think it's just someone wanting to get their money back and they don't have the balls to contact you directly. I've had a few of these in the past. I simply go and find out all information I can about them -- search their email address in Google and you'll be amazed what you can find. Also put their email address into Facebook and find their profile. Then use their IP address and find who their Internet Service Provider is.

    I then send them a friendly email with all information I have about them and inform them if the fraudulent claim they are making is not reversed, I'll provide all proof to Paypal and also contact their ISP and inform them they are using their internet service to conduct fraudulent transactions.

    9 out of 10 times the claim is reversed. Sadly you have to get down to their level sometimes.
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    • Profile picture of the author wordwizard
      Originally Posted by sbucciarel View Post

      My guess is that it's a fraudulent affiliate and most likely done with a stolen credit card. Pretty common on W+ and JVZoo. Had six chargebacks roll in using JVZoo, all due to several fraudulent affiliates. Never approve an affiliate you don't know well. There are quite a few threads on WF on this topic. Here's mine.

      http://www.warriorforum.com/main-int...maybe-not.html

      Good advice! For a while, I had a whole series of chargebacks due to "unauthorized use" of credit cares, from Digiresults affiliates.

      But then, I wasn't very careful when approving them. That has changed a LOT. I hardly approve anyone anymore now. It really scared me away from wanting to recruit or even have affiliates.

      But I might start again at some point...

      And I'll also check out that WP plugin PayFense.
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      • Profile picture of the author VinnyBock
        Originally Posted by WillR View Post

        I think it's just someone wanting to get their money back and they don't have the balls to contact you directly. I've had a few of these in the past. I simply go and find out all information I can about them -- search their email address in Google and you'll be amazed what you can find. Also put their email address into Facebook and find their profile. Then use their IP address and find who their Internet Service Provider is.

        I then send them a friendly email with all information I have about them and inform them if the fraudulent claim they are making is not reversed, I'll provide all proof to Paypal and also contact their ISP and inform them they are using their internet service to conduct fraudulent transactions.

        9 out of 10 times the claim is reversed. Sadly you have to get down to their level sometimes.
        This is my gut feeling as well, I'm going to try some of the stuff you mentioned... Thanks

        Originally Posted by wordwizard View Post

        Good advice! For a while, I had a whole series of chargebacks due to "unauthorized use" of credit cares, from Digiresults affiliates.

        But then, I wasn't very careful when approving them. That has changed a LOT. I hardly approve anyone anymore now. It really scared me away from wanting to recruit or even have affiliates.

        But I might start again at some point...

        And I'll also check out that WP plugin PayFense.
        Lesson learned...

        This was my first product, so I was so happy to be getting affiliate requests that if they had enough posts here on the forum, I approved them...

        Now I know, and knowing is half the battle... (GI Joe :p)
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        • Profile picture of the author VinnyBock
          Originally Posted by MarketMaster13 View Post

          PayPal screwed me up sometimes back and that's why i switched to Payoneer which has made my life easier and smooth
          Thanks for your input...

          I've used a payoneer debit card for certain sites to pay me, but their rates are CRAZY... I love paypal, I think this is just a freak situation... I hope that's all it is...
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