Summary:
Paypal users are facing an ongoing email scam campaign that leverages the platform’s address settings to distribute fraudulent purchase notifications that use social engineering techniques to convince users to grant the attacker remote access. In the past month, many users, including some working at BleepingComputer, have received emails from Paypal purporting that the potential victim added a new address as a confirmation message. The email includes the address allegedly added to the user’s PayPal account and a message claiming to be a purchase confirmation for a MacBook M4. Scammers are exploiting the "gift address" feature, which allows users to add multiple addresses to their PayPal profile. By injecting malicious content, disguised as purchase confirmations, into the address fields, they trigger legitimate PayPal email notifications containing the scam message. These emails, originating from "service@paypal.com," bypass spam filters and convince recipients that their accounts have been compromised. The emails prompt users to call a fake PayPal support number, where scammers attempt to gain remote access to victims' computers using tools like ConnectWise ScreenConnect. Once connected, the scammers aim to steal money, deploy malware, or exfiltrate data. The scam is facilitated by PayPal's failure to restrict the character count in address fields, enabling the injection of lengthy scam messages. The emails are routed through a series of forwards, starting with the scammer adding the address to their own PayPal account, triggering a legitimate PayPal email to the scammer's address, which is then forwarded to a Microsoft 365 mailing list, and finally distributed to the targets.

Security Officer Comments:
This phishing campaign demonstrates a sophisticated understanding of PayPal's systems and a clever exploitation of legitimate features by the threat actor. The fact that the emails originate from PayPal's own servers makes this attack particularly dangerous to organizations and difficult to detect, as this bypasses traditional email security measures. The use of "gift addresses" to inject malicious content is a novel approach, highlighting the need for stricter input validation on PayPal's end. The character limit in address fields should be drastically reduced to prevent this type of abuse. Furthermore, PayPal needs to re-evaluate its email notification system to ensure that legitimate notifications cannot be manipulated to deliver malicious payloads. The forwarding mechanism, involving a Microsoft 365 mailing list, also raises concerns about the potential for wider distribution and the anonymity it provides to the attackers.

While the technical aspects of the scam are noteworthy, the social engineering component is equally important. The sense of urgency created by the fake purchase notification and the fear of account compromise are powerful motivators that can easily trick even users with a trained eye. Despite this, the incident underscores the importance of user education and awareness training. Users should be reminded to always verify the legitimacy of emails by directly logging into their PayPal accounts and to never call unsolicited phone numbers provided in emails. As platforms like PayPal evolve, so will the tactics of attackers. Continuous monitoring, proactive security measures, and rapid response to emerging threats are essential to mitigate the risks posed by these types of scams.

Suggested Corrections:

• Users should always be cautious of individuals or organizations that ask for personal information. Most companies will not ask for sensitive data from their customers. If in doubt, users should verify with the company itself to avoid any potential issues.
• Users should always take a close look at the sender’s display name when checking the legitimacy of an email. Most companies use a single domain for their URLs and emails, so a message that originates from a different domain is a red flag.
• As a general rule, users should not click links or download files even if they come from seemingly “trustworthy” sources.
• Check for mismatched URLs. While an embedded URL might seem perfectly valid, hovering above it might show a different web address. In fact, users should avoid clicking links in emails unless they are certain that it is a legitimate link.
• Users should always be on the lookout for any grammatical errors and spelling mistakes. Legitimate companies will often employ proofreaders and editors who ensure that the materials they send out are error-free.
• Users should not be frightened or intimidated by messages that have an alarmist tone. They should double check with the company if they are uncertain about the status of their accounts.
• Phishing emails are designed to be sent to a large number of people, so they need to be as impersonal as possible. Users should check whether the message contains a generic subject and greeting, as this can be a sign of a phishing attempt.
• Although not every end user has access to advanced anti-phishing software, they can still use the built-in protection of their email clients to filter messages. One example is setting the email client to block all images unless approved.
• Legitimate companies will never send confirmation emails unless there are specific reasons for doing so. In fact, most companies will avoid sending unsolicited messages unless it’s for company updates, newsletters, or advertising purposes.
• Users should always take the context of an email or message into account. For example, most online accounts do away with viewable member numbers, so users should be wary if they receive emails containing a “member number” for services that generally don’t use them.
• It is important to take note of unusual information in the text of the message. Any mentions of operating systems and software that are not typically used by consumers can often be indicators of a phishing attempt.
• If it seems suspicious, it probably is. Users should always err on the side of caution when it comes to sending out personally identifiable information through messages and emails.

Link(s):
https://www.bleepingcomputer.com/news/security/beware-paypal-new-address-feature-abused-to-send-phishing-emails/