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By Erin Smith

PayPal is warning individuals and businesses who use PayPal to process payments for goods they sell online, to beware of a new scam.

The way the scam works, according to PayPal, is the scammer will send an email to someone about purchasing an item they have for sale. The scammer will request the seller use PayPal to process the payment.

The seller will then receive an email that looks like the PayPal notification when a payment is processed. The seller will then ship the merchandise only to learn later the payment was never received.

PayPal warns, “Some fraudsters try to trick you into thinking that you’ve received a payment. They want what you’re selling for free. Before you ship anything, log into your PayPal account and check that you were actually paid.”

PayPal also reminds sellers, PayPal will never ask you for sensitive information such as your password, access to your banking information or other personal information.