Refunded/Cancelled Event Scam via PayPal
Scammers pose as refund processors for a cancelled event and abuse PayPal's 'Friends and Family' or invoice features to trick fans into sending money instead of receiving it.
Part of: Refunded & Cancelled Event Scam
Last reviewed: 5 July 2026
PayPal is a common way fans originally paid for tickets, which makes it a natural channel for scammers to insert themselves into the refund process, exploiting the platform's mix of protected purchases and unprotected personal transfers.
How this scam works on PayPal
After a cancellation, a scammer contacts the fan claiming to represent the seller, promoter, or platform and offers to process the refund through PayPal, but instructs the fan to send a small 'verification' or 'processing' payment via PayPal's Friends and Family option first, falsely claiming it is needed to activate the refund. In another version, the scammer sends a fake PayPal invoice or payment request disguised as a refund confirmation that, if clicked and 'accepted,' actually authorizes a payment out of the fan's account rather than a payment in.
Because Friends and Family transfers on PayPal carry no buyer protection and settle quickly, any money sent this way is difficult to recover, and fake invoice or refund-request emails are designed to look enough like real PayPal notifications that a fan expecting a genuine refund may not read closely before clicking. The end result is the fan pays money out under the belief they are completing steps to receive a refund that never arrives.
Common red flags
- You are asked to send a payment via PayPal Friends and Family to 'unlock' or 'verify' an incoming refund
- A refund notification asks you to click and 'accept' something rather than simply crediting your account automatically
- Sender's PayPal email or account name does not match the original seller or platform you paid
- Urgency language pressures immediate action to avoid losing the refund window
- No refund activity appears when checking your PayPal transaction history directly and independently
- Request comes through DM or personal message rather than PayPal's own official notification system
How to protect yourself
- Legitimate refunds are credited automatically to your original payment method and never require you to send money first
- Never send a Friends and Family payment as part of receiving a refund
- Check your PayPal account and transaction history directly rather than trusting a linked notification
- Verify any refund-related message came from PayPal's own verified system by logging in separately
- Contact the original seller or platform through a verified channel to confirm any refund request
- Report and do not click suspicious payment requests or invoices claiming to be refunds
How to report it
- Report the suspicious message or fake invoice directly to PayPal's fraud and phishing report tool
- File a dispute through PayPal's Resolution Center if a payment was sent under false pretenses
- Report the scam to the FTC or the FBI's IC3 (ic3.gov)
- Contact your bank or card issuer if the PayPal account is linked to a card that was charged
Frequently asked questions
Can a real refund ever require me to send money on PayPal first?
No. A genuine refund is credited to your account or original payment method without any action required from you beyond, at most, confirming your account details on PayPal's own site.
I sent a Friends and Family payment thinking it was for a refund fee — can I get it back?
It's unlikely, since Friends and Family payments carry no buyer protection. Report it to PayPal immediately and file a complaint with consumer protection authorities, but recovery is not guaranteed.