Does PayPal Put You At Risk of Identity Theft?

What You Need to Know About PayPal and Identity Theft

Over the years PayPal has become an increasingly-popular way to make payments online, the problem is that many people feel PayPal puts them at an increased risk of identity theft. Are these fears founded, or are these people missing out on a valuable online payment tool? If you've been afraid to use PayPal due to identity theft concerns, there are some things you should consider.

Advanced Security Features

PayPal knows that its customers are concerned about identity theft, which is why they work so hard to prevent it from happening on their site. Not only does PayPal offer educational tools geared towards teaching users about identity theft risks, but they have also implemented numerous identity theft tools such as free EquiFax credit alerts and the new PayPal Security Key.

Without the security key you log into your PayPal account using your email address and password. With the security key, however, an extra layer of protection is added.

Those who use the security key with their PayPal accounts are required to enter their email address and password, like other PayPal users, but then they also must enter a security key code generated by the security key device. The device can be ordered from PayPal for $5 and is really a useful security feature.

When Phishing Comes Into Play

When PayPal users do become identity theft victims, it's usually do to a phishing scam. Because of this, PayPal works hard to fight fishing. Not only can you forward emails to to verify if an email really came from PayPal, but PayPal has also introduced something called Iconix Email Identification. This is a tool you download to your computer that can let you know instantly if an email really came from PayPal or not.

So can PayPal lead to identity theft? It's not impossible. But then again, any online transaction has the potential of doing so. The key is knowing how to manage your online accounts and what steps to take to ensure their security. PayPal offers its customers the tools to do just that.

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