Why does PayPal protect scammers?

Question

The account of a reputable user on a collectors forum has been hacked and used to scam at least 6 people causing a loss of multiple thousand dollars. Because the user was known and had a great history and relationship with others, a lot of people fall for it when he started to sell a few more items of his collection this weekend.Paypal denies to investigate because friends and family was used in all cases, because the considered the member a friend.While I somewhat get that Paypal is not legally required to make people whole, I feel not even looking the case at all is neglectance.

akerl_ · Accepted Answer

https://www.paypal.com/us/cshelp/article/whats-the-differenc...The whole purpose of "friends and family" is that there's less fees but no protection. If you're buying a good or service from somebody, even somebody you know, you probably shouldn't pick "friends and family".

is_true · Answer

They permanently limited my account because they failed to process my ID and got my birth date wrong, I opened a case and when I told them that, they just deleted all support messages.Paypal is just a tool to avoid giving your CC to a third party, never think about adding your bank account to your account.

mike_d · Answer

Because with F&F you are explicitly opting out of fraud protection in exchange for a free service.If you don't like the free food, don't eat it.

cheerioty · Answer

I&rsquo;m not asking for PayPal to make people whole. But when their service is used as part of a scam/crime, are there legally not bound to investigate?

flowzai · Answer

For users, PayPal ensures a high level of trustworthiness.

slater · Answer

Money.

Why does PayPal protect scammers?

https://www.paypal.com/us/cshelp/article/whats-the-differenc...
The whole purpose of "friends and family" is that there's less fees but no protection. If you're buying a good or service from somebody, even somebody you know, you probably shouldn't pick "friends and family".

Because with F&F you are explicitly opting out of fraud protection in exchange for a free service.
If you don't like the free food, don't eat it.

I’m not asking for PayPal to make people whole. But when their service is used as part of a scam/crime, are there legally not bound to investigate?

For users, PayPal ensures a high level of trustworthiness.

Money.