The Fraud Codex

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Is PayPal a Scam?

paypal.comLegitimate Business
Risk Assessment
10%Risk Score
Low Risk

Summary

PayPal is a legitimate, publicly-traded payment processor (NASDAQ: PYPL) founded in 1998. One of the world's largest online payment platforms with over 430 million active accounts.

PayPal is absolutely NOT a scam. It is one of the most established payment platforms globally. Low Trustpilot reflects customer service issues, not fraud.

Company Information

Parent Company
PayPal Holdings, Inc.
Founded
1998
Headquarters
San Jose, CA
Stock
NASDAQ: PYPL
Employees
25,000+

Trust Indicators

Concerns

  • Account freezes/holds can occurmedium[source]
  • Heavily targeted by phishing scamsmedium[source]
  • Customer service can be slowlow[source]
BBB Rating
A+
Trustpilot
1.2/5
BBB Complaints
8,500

💡 Recommendations

  • 1.Enable two-factor authentication
  • 2.Link a credit card for additional protection
  • 3.Beware phishing emails impersonating PayPal
  • 4.Use Goods & Services for purchases, not Friends & Family
  • 5.Keep transaction records

📚 Sources

PayPal Investor RelationsSEC EDGAR - PayPal FilingsNASDAQ - PYPL StockBBB Business ProfilePayPal Licenses
Last updated: 2026-01-22

Disclaimer: This analysis is for informational purposes only. Information may be incomplete, outdated, or inaccurate. Our assessments should not be the sole basis for financial, legal, or personal decisions. Always conduct your own research and due diligence.