A few days ago I completed a few transaction over LocalBitcoins.com to a buyer named Muumbis (currently blocked) who seemed to be a trusted user, had good feedback and 2 months of multiple transactions. The buyer sent me the funds through a PayPal transfer, and then I proceeded to send/release the bitcoins to his account once the money hit my account. These transactions were very profitable to me, amounting to about 40% of profit over the then exchange price of bitcoin.
Only after 6 PayPal transactions amounting to a total of around £11000, I noticed that the person’s details included in the PayPal account used to forward all these payments differed greatly from the personal information of this LocalBitcoins.com user.
For comparison sake, the owner of the PayPal account is a Canadian, while this person seems to be based in Netherlands (Proxy, likely) and has a verified phone number from Kenya, as well as, beginning of a different gender.
As of now PayPal as yet to contact me about any irregularities in these transactions and I made sure I transferred all my PayPal balance to my savings account. However I’m confident I got [problem]med and it’s just a matter of time until these payments are flagged as unauthorized transactions and the owner of the PayPal account files a chargeback against me leaving me empty of bitcoins and about 5000£ of negative PayPal balance, which I have no means to payback as I’m student and I already have some debt going.
Summary, I sold some bitcoins at 40-50% in profit to a guy who used a hijacked PayPal account to pay me. It’s just a matter of time until the victim of the hijacked account files a PayPal unauthorised transaction/ chargeback against me. PayPal then reverses the transaction and the [problem]mer gets the bitcoins while I’m left to pay around 5000£ of debt due to the profit margin.
I’m divested by this, as I’m a victim too just like the affect PayPal account owner, plus I have no means to payback if these transactions are found to be unauthorized.
Perhaps, in the end, all I could do is payback the some of the money to the victim excluding the profit/debt margin that was employed in this [problem].
God, I can’t believe a fell for it, I’m aware of this sort of thing yet due to my own stupidity or being a student with no income I just went for it….Never felt so dumb.
I know I’m making assumptions on what if…however, I just need to a little guidance on what to do next or who to turn to, basically a course of action to reduce all the possible damage.
Thank you all