The idea of online banking and using smart technology to send or receive money online, has been growing in popularity ever since secure internet systems became widely available. Today, it’s difficult to imagine life without it — more than 90% of UK residents used online banking in 2022.1
This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.
Receiving money virtually from family and friends can be an easy process. But many people may wonder if it's safe to receive money from a stranger — for an item they sell on an online marketplace, for example — with whom they don’t want to share banking details.
In moments like these, a digital finance or money transfer app such as PayPal offers a secure way to send and receive money. But not every stranger can or should be trusted, and it’s important to be aware of possible scams and to protect yourself from fraud.
In this article, we’ll examine safe ways to receive money from a stranger online and what to do if you suspect a scam.
*A PayPal account is required to send and receive money.
Digital wallets and money transfer apps are among the fastest-growing payment methods in the world. While their use is widespread in the US and Europe, Asia is leading the way in mobile wallet adoption.2
With more than 431 million users worldwide, PayPal is a global financial platform that allows UK residents to store their bank cards and account information in the digital wallet, making it easy for them to receive money from others.3 But is PayPal safe for receiving money from strangers?
When people receive money through a PayPal transfer for goods or services, both parties may be protected by PayPal's buyer and seller protection. Available on eligible purchases. Limitations apply.
Some strangers may try to use financial platforms such as PayPal to scam people. So, it's always wise to take precautions when receiving money online.
Authorities warn against many different money scams, and fraudsters come up with new schemes all the time. In some cases, they may pressure you into making a payment, or they may supposedly want to send you money to get your banking details.4
One option is to use a secure financial platform, such as PayPal. That’s because it’s possible to send or receive money via an active email address or a unique payment link, eliminating the need to share banking details.
It is a red flag, however, if a stranger sends money to your account for no apparent reason. It might be a scam or a money laundering attempt. It’s a good idea to report unusual activity to the PayPal Security Centre to try to resolve the situation.
It’s always important to proceed with extreme caution when thinking about giving bank details to strangers. Here are some things that should never be shared, especially online:5
If there is a reason to receive money from a stranger — for an appliance or piece of furniture sold on an online marketplace, for example — it might be a better idea to ask them to send money by email or through PayPal with a phone number. That way, there’s no need to share bank transfer details.
Fraudsters are coming up with new ways to trick people all the time, trying to stay ahead of evolving security measures. Some of the most common scams include:6
Many common fraud attempts involve some type of bank transfer scam, where people are asked to send or receive money to get their banking details.
Those who receive a suspicious text, scam email, or phone call asking for personal information or a bank transfer should trust their instincts, avoid sharing information, and report it to the authorities.
Receiving money on PayPal is fast and secure. The following steps may help those who are wondering how to send someone their PayPal details or how to get paid through PayPal.
With a money request, the payer does not need to have a PayPal account. They will get an email with a note describing what the requested payment is for and a Pay Now button. However, they can download the PayPal app in seconds if they want.