Do you use PayPal online? The company is warning New Yorker's of a new scam going around that is actually working.

WIVB reports the latest in hacker scams is focusing on people selling items online and use PayPal to send and receive payment.

So here's how it works:

1) The hacker will contact someone about buying whatever they're selling online and will request the seller uses PayPal.

2) The seller will then get an email that looks like a PayPal email, and it will claim "You've been paid."

3) The seller then ships the product, without checking to see if the money is actually in their PayPal account.

4) The scammer never actually made the payment which means the victim is out the money and the product.

"Some fraudsters try to trick you into thinking that you've received a payment," according to a PayPal website that helps people spot scams. "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 reminds users to make sure the email is actually coming from PayPal. Looking at the email address can help you determine that.

"Fraudsters can easily fake the 'friendly name' in the sender's email address. For example, an email can appear to be from "PayPal Services," but actually be from spfr2013qz7@nomail.com," the website warns."

Any concerns contact spoof@paypal.com.