PayPal Penny Scam - Beware Scamming - Fraud 0 0 1 1 Apr 16, 2026 2026-04-16T18:13:41-05:00 Apr 16, 2026 2026-04-16T18:20:53-05:00 Online Threat Alerts (OTA) The "penny scam" typically refers to two distinct fraudulent activities: a PayPal phishing scam where scammers send $0.01 to trigger a fake "reversal" request, or investment fraud involving low-priced "penny stocks." Both aim to steal personal information, money, or investments through deception. 1. PayPal/Digital WalletScammers send small payments (e.g., $0.01) to users.The Tactic: They include a message claiming they accidentally sent money and provide a fake support phone number or phishing link to "reverse" it.The Goal: To trick users into calling, handing over account credentials, or allowing remote computer access.Protection: Do not call the number. Report the message to the platform (e.g., phishing@paypal.com). Check your account directly through the official app, not via links in the message.2. Investment ScamsThis involves, as described in this DC.gov article, promoting low-priced, volatile stocks to investors.Pump-and-Dump: Promoters hype a worthless stock to drive up the price, then sell their own shares at the peak, leaving others with heavy losses.Warning Signs: Promises of high returns, "guaranteed" profits, and high-pressure, unsolicited calls or emails, says this source.Protection: Research companies thoroughly, avoid acting on "hot tips," and use FINRA's BrokerCheck to verify brokers.