In Nautiluso Case, PayPal May Be The Biggest Loser
Brian makes an interesting point in his comment in the article on the buyers filing $30,000 in claims against Nautiluso. He notes in the earlier fraud that emanated from Italy, most, if not all, of the buyers were made whole by PayPal. He mentions a maximum of $2,000, but I think there actually is no maximum. I spoke to one of the Nautiluso buyers yesterday who spent more than $2,000 and was fully reimbursed by PayPal and was asked not to talk about it, so I won’t mention his name. We also heard from one of our readers that he has already been reimbursed by PayPal. The challenge for organizations like eBay and PayPal is that their business model is predicated on creating a safe buying and selling environment, so something like this poses a major challenge to them. At the end of the day, they don’t want the negative publicitythat a scam like these can create, and they don’t want to alienate a core part of their audience. There are literally tens of thousands of jazz records sold on eBay every single week, and many of them, as we see, are selling for significant amounts of dollars. If it costs PayPal $132,000 to make their buyers feel safe, I’m sure they will believe that this is money well spent — and they’ll get it back from us some day in higher fees. So my advice to anyone who has been caught in this scam is to fight hard to get your money back, especially if you paid by PayPal. The person with whom I spoke said he called PayPal every other day, several times a day, and eventually spoke to a manager. In the end, it paid off and he got back every dollar. Also, please feel free to use Jazz Collector as a forum to keep the rest of the community informed on how this is being handled.