Login Blog


Blog
>
>
Can Someone Hack Your Bank Account Through PayPal—Answered


Can Someone Hack Your Bank Account Through PayPal—Answered


Recent trends in financial crime reports show that payment fraud is skyrocketing. In 2023, 80% of organizations fell victim to payment fraud attacks, while consumers lost up to $10 billion to fraud and scams.

Since PayPal is one of the several channels criminals use to access victims’ funds illegally, you may wonder—can someone hack your bank account through PayPal?

If you use this digital wallet and are worried about your financial safety, we’ll show you how to stay safe. In this guide, you’ll learn how PayPal scams work, how to tell if your account has been hacked, what steps to take if you’re a victim, and how to protect yourself from PayPal scams.

Understanding How PayPal Works To Keep Your Account Safe

Knowing how PayPal security features work to ensure your account and transactions are secured is vital to protection. These are PayPal’s main security features:

Security FeatureHow It WorksActivation Mode
Data encryptionPayPal uses SSL protocol technology plus 128-bit data encryption to enable safer transactionsPayPal activated
Fraud monitoringPayPal offers 24/7 fraud detection to spot suspicious activitiy and alert you quicklyPayPal activated
Browser integrityThe platform checks that you and your connections are on a secure Transport Layer Security (TLS) and HTTPS connection so your information is secure during transferPayPal activated
Email confirmationEvery time you send or receive a PayPal payment or update your account details, you’ll receive an email from PayPalPayPal activated, user-modified
Purchase and Seller protectionFor merchants and customers who use PayPal for transactions, PayPal provides protection to guard against fraud and unsatisfactory purchasesBased on eligibility

Despite the availability of these safety features, scammers can still gain access to your account through data breaches, carelessness on the user’s part, or malware overrides.

Can Your Bank Account Get Hacked Through PayPal?

A hacker with sophisticated technology can access your bank account through PayPal. Although PayPal is generally considered a secure online payment platform, cybercriminals today are getting more creative and dedicated to infiltrating the financial accounts of unsuspecting victims.

Typically, PayPal’s security features prevent scammers from knowing what goes on in your account, but if the scammers override your device with their malware, getting your financial information is no longer difficult. 

It’s seemingly easy for hackers to get to your bank account via PayPal because of its account authentication system. To verify your bank account on PayPal, you must provide details of the small deposits made to the account. If scammers get access to that information after infiltrating your computer, both your PayPal and bank accounts become vulnerable.

How To Tell if Your PayPal Account Has Been Hacked

If you notice suspicious activities on your PayPal account, you shouldn’t ignore them since they can be a sign of a hacking attempt. 

Signs that could indicate that your PayPal account has been compromised include:

  • Being denied access to your account—If you try to log into your account and can’t get in, the scammer may have changed your password 
  • Noticing unauthorized transactions on your account—Your PayPal alerts could indicate multiple unauthorized payment notifications, such as withdrawals or transfers from your account
  • Having your payment or transaction fail due to insufficient funds—You may be unable to process payments because your balance is no longer the amount you thought you had
  • Noticing strange updates and notifications—You may start receiving strange alerts, such as updates to your contact information, password reset requests, and logins from unfamiliar locations or devices
  • Being unable to change your PayPal password—If you try changing your password and get an error message, your account recovery information may have been changed to lock you out

What To Do if There’s a Hack Attempt on Your PayPal Account

Before a scammer breaks into your PayPal account, you may notice several strange unauthorized activities—these are called hack attempts. At this stage, the scammer isn’t successful yet, but that doesn’t mean they’ve given up on trying. Take these steps immediately to secure your account:

  1. Confirm there’s a hack attempt
  2. Change your password
  3. Set up 2FA if it’s not already enabled
  4. Check other accounts for suspicious activity

Confirm There’s a Hack Attempt

Log in to your account using your password and look for suspicious activities. Check for small unauthorized deductions in the app and your account statements because they could be scammers testing to see if you have money in the account. Look into your settings or email to see if your contact details have been changed or if there are unfamiliar logins.

You can also attempt to pay for something using PayPal. If the payment fails, there may have been an attempted breach. 

Immediately Change Your Password

If you notice anything suspicious, immediately reset your password. This will lock out the hackers and give you time to bolster your security. If you have security questions enabled, change them as well.

Follow these steps to change your PayPal password:

  1. Log in to your PayPal account, then navigate to Settings
  2. Open the Security tab that appears above your name
  3. Click Update next to the Password tab
  4. Input your current password, then enter the new password twice
  5. Click Change Password to finish

Set Up 2FA if It’s Not Already Enabled

If your two-factor authentication (2FA) system isn’t enabled, activate it to add an extra layer of security to your passworded account. You can only activate this via the PayPal website. Here’s how:

  1. Log in to your PayPal account and navigate to Settings
  2. Click on the Security option and select Set Up 
  3. Select your preferred 2FA method for receiving codes. You can use a secure authenticator app like Google Authenticator
  4. Finish your setup by following the Set it Up prompts

Check Other Accounts For Suspicious Activity

If your account is being breached, your other financial accounts, such as your savings or checking accounts, may not be safe as well.

To protect yourself, quickly change your credentials, especially if you use the same password on multiple platforms. Create unique passwords for each platform you use so hackers can’t gain easy access. Watch out for phishing attempts where the scammers pretend to be your family members or friends to get your account details.

Examine every message you receive regarding your PayPal account and contact any financial institution linked to your PayPal to have them upgrade their protection on your other accounts.

What To Do if a Hacker Has Breached Your PayPal Account

If your PayPal account has been breached, the scammers have successfully broken in. However, you may still be able to save your account if you act fast. Do the following:

  1. Reset your password
  2. Contact PayPal as a guest
  3. Review your account security
  4. Report the fraud to PayPal

Reset Your Password

Try to log the hacker out by creating a new password quickly. Visit the website from your web browser or open the PayPal app, then take these steps:

  1. Click Forgot Password? on the homepage
  2. Input your email address and click Next
  3. Permit the security check and click Next
  4. Once that’s done, you can create your new, stronger password

If you do this successfully, you should be able to lock the criminals out. Remember to check whether your contact credentials or backup and recovery settings have been compromised.

Contact PayPal as a Guest

If you can’t successfully change your password, contact PayPal for immediate assistance. Since you’re not logged in, you can’t contact the team from within the app. However, you can reach out to PayPal as a guest caller from PayPal’s contact page or send them a live message. 

You’ll be asked to verify your identity, so prepare your phone number, registered email address, and a bank account or credit card statement for the account linked to your PayPal.

Review Your Account Security

Once you regain access to your account, look through it to spot unusual activity like unauthorized payments and purchases and modifications to your contact or personal details. 

After reviewing your account, set a stronger password, enable 2FA for added security, and update your PayPal app. Updating your app ensures you’re on the most recent version of PayPal that’s less vulnerable to infiltration.

Report the Fraud to the Appropriate Authorities

When a financial crime occurs, filing a report or logging a complaint with the right entities right away increases your chances of recovering your money (if a loss has occurred).

Here’s a list of the parties to report to:

Agency/Entity How To Contact ThemTime Frame
PayPal’s resolution centerIf you find unauthorized transactions on your account, report the issue through the Resolution Center’s pageWithin 180 days of the incident
Bank/financial entityContact any bank or credit card company linked to your PayPal account through their customer support line because these accounts may be at riskImmediately
Federal Trade Commission (FTC)Visit the FTC Fraud Center or Identity Theft Center to report the crime as it pertains to your case. The documents from these reports will help you dispute your case with the bankImmediately
Local policeVisit your local law enforcement department to file a report about the scam. Make sure to take your FTC report and useful evidence with youImmediately

How To Protect Yourself From Online Fraudsters

Staying safe from online fraudsters requires being one step ahead of them. You can keep your PayPal and linked bank accounts safe from cyberattacks by following these safety practices:

  1. Use unique passwords
  2. Use a VPN to access PayPal on public Wi-Fi
  3. Learn more about phishing scams
  4. Install the PayPal app on your phone to receive real-time alerts
  5. Don’t save large balances in your PayPal or Bank Account

Use Unique Passwords 

IT experts claim cracking an eight-character password takes a few minutes to hours, but a 16-character password with a random combination of characters can take centuries! 

Secure your account with a unique password that has 14 characters or more. Strengthen it further by mixing uppercase and lowercase letters, then adding numbers and special characters.

Don’t use a single word as a password, especially if it’s related to your personal information, such as your name or username. Use short phrases instead, then randomize the capitalization and sprinkle in a few digits and symbols for stronger security.

Use a VPN To Access PayPal on Public Wi-Fi

Never access PayPal through a public Wi-Fi connection. Public Wi-Fi networks are vulnerable to attackers, making it easy for them to get into your accounts. Instead, use a Virtual Private Network (VPN) to encrypt your connection and mask your IP address and location. This way, if you have to use your PayPal for banking or shopping outside your home, you’ll be protected from cyberattacks.

Learn More About Phishing Scams

Educate yourself on the various PayPal phishing scams so you can easily tell when you’re being attacked. In 2023, Jeff Feeney, a Chicago local, lost $50,000 to fraudsters in Cambodia because he wasn’t suspicious enough of the PayPal phishing email he received.

Phishing attacks can occur via email, text messages, social media DMs, and phone calls, as well as by clicking suspicious links without verifying their legitimacy. Learn all you can about how scammers phish and stay alert for scams at all times.

Install the PayPal App on Your Phone To Receive Real-Time Alerts

PayPal can only alert you about fraud through your mobile app. If you haven’t installed it, download the app and set up your alerts to quickly sniff out scammers and take adequate action during attacks.

Don’t Save Large Balances in Your PayPal or Bank Account

If you use your PayPal account for business or personal savings, consider moving your money to a safer account. This step is crucial—if scammers breach your PayPal account, they won’t just stop at taking the total account balance. They’ll find ways to infiltrate your other accounts and wipe out your funds in minutes, usually with little chance of recovering your money. 

This is why financial security experts advise people to keep huge savings or cash reserves in a more secure account that’s different from savings accounts or online payment apps.

Traditional bank accounts may look like good savings platforms for your cash reserves and savings, but they’re not 100% secure. One of the drawbacks of using a traditional savings account is that it only offers a limited amount of protection against fraud and bank failure. 

Banks offer FDIC insurance, limited deposit insurance that only secures some of your funds if your bank fails. If a cyberattack occurs on your accounts, banks will only alert you about the attack after the breach, which means you can lose your money before you get any chance to save it.

That’s why you should choose a savings account heavy on fraud protection—like FortKnox. With your funds locked away in this secure savings platform, you mitigate the risks of potential money loss that may occur after the account breach.

Chat Support