- Why criminals are using small business names in fake PayPal invoices
- How the scam tricks both victims and business owners
- Easy steps to check if an invoice is real or fake
- What to do if you’ve already fallen for it
- How business owners can protect their reputation
- Simple prevention tips for small teams
Cybercriminals have found a new trick: sending fake PayPal invoices that use the names of real small businesses.
In one case, a local furniture shop’s name appeared on hundreds of invoices demanding about $1,000 each. The shop owner hadn’t sent any bills at all, yet her phone and email were flooded with complaints from people across the country asking why they owed money.
The invoices looked convincing, but instead of PayPal’s normal payment button, they listed a phone number to “fix the problem.” That number went straight to the scammers, not PayPal.
This kind of fraud not only confuses victims but also damages the reputation of the small businesses whose names are misused.
How the Scam Works
For the person who gets the invoice
- You receive an email that looks like a PayPal bill.
- The note says things like “Call now to cancel” or “Your account has a problem.”
- If you call, the scammer pretends to be PayPal support and pressures you into giving payment details, installing software, or sending money.
The invoice itself might look real, but the instructions are fake. PayPal never asks you to call a random phone number.
For the small business being used
- Sometimes criminals just copy your business name or logo to make their fake invoices look real.
- Other times, they hack into an old PayPal or email account with weak security and send invoices directly from it.
Either way, customers and strangers start blaming your business—even though you had nothing to do with it.
Quick Way to Check an Invoice
Spend 60 seconds to confirm:
- Do not call numbers or click links in the email.
- Open a new browser tab and log in at paypal.com.
- Go to Activity → Invoices.
- If the invoice is there and looks fake, decline it and report it.
- If it’s not there, it’s a spoof—delete and report it.
If You Already Fell for It
- Change your PayPal and email passwords right away. Turn on two-step verification.
- Contact your bank if you gave out card or bank information.
- Remove any software you installed for the scammer and run a full security check.
- Keep all evidence and report it to PayPal, your bank, and a scam tracker like the BBB Scam Tracker.
If Scammers Are Using Your Business Name
- Let people know quickly. Post a clear warning on your website and social media.
- Close or secure old PayPal accounts and make sure every login has a strong, unique password and two-step verification.
- Share details with PayPal and, if needed, law enforcement.
- Use tools to monitor your business name, website, and email addresses online so you catch impersonation attempts early.
Everyday Prevention for Teams
- Treat “call now to avoid charges” as an instant red flag.
- Train staff who check invoices to follow the 60-second rule above.
- Keep invoice review and payment approval separate.
- Use security software that blocks phishing and suspicious links before anyone clicks.
Sources:
- Bitdefender – Scammers Using Small Business Names for Fake PayPal Invoices
- CT Insider – Connecticut Shop Name Misused in PayPal Scam





