I paid $2,000 for a raw 1st Edition Lugia on Facebook Marketplace. When I sent it to PSA, it came back “Evidence of Trimming/Altered.” It’s worthless. I called my insurance company to file a claim for “Fraud.” They told me, “We cover physical loss, not financial stupidity.”
Key Takeaways
- Fraud Exclusion: Property insurance covers physical damage or theft. It does not cover you buying a fake, altered, or counterfeit item. That is a “financial loss,” not a property loss.
- Purchase Protection: Your only hope is usually the payment method (PayPal Goods & Services, Credit Card Chargeback).
- “Title Insurance” for Cards: Some new vault services (like eBay Vault) guarantee authenticity, essentially insuring against fakes, but only if you buy/store through them.
- Dealer Liability: If you bought from a registered business, you can sue. If you bought from “PokeGuy123” on Facebook, you are out of luck.
The “Why” (The Peril)
Insurance covers perils (Fire, Wind, Theft). “Bad Deal” is not a peril.
“Exclusion: Loss caused by voluntary parting, false pretense, or purchasing goods that are counterfeit.”
The Investigation: Recovery Options
I looked for ways to get money back on a fake.
1. Homeowners/Specialty Insurance
- Result: Denied. “We do not insure authenticity.”
2. PayPal “Goods and Services”
- Result: Covered. If you file “Item Not as Described” within 180 days, and have a PSA rejection letter, PayPal usually forces the refund.
3. Credit Card Chargeback
- Result: Possible. If you paid directly with a card, you can file a dispute for “Counterfeit Merchandise.”
Comparison Table
| Payment Method | Fake Protection? | Time Limit |
| Cash / Zelle | None | N/A |
| PayPal F&F | None | N/A |
| PayPal G&S | Yes | 180 Days |
| Insurance | No | N/A |
Step-by-Step Action Plan
- Authentication First: Never buy high-end raw cards without a “money back guarantee if it fails grading.”
- Use Protection: Never use Zelle or PayPal Friends & Family. Saving 3% fees risks 100% of the money.
- Get the Rejection in Writing: You need the official slip from PSA/Beckett stating “Altered” or “Counterfeit” to win a chargeback.
FAQ
What if someone swaps my real card for a fake?
That is theft/fraud. If you can prove it (video evidence of opening the return), insurance might cover it as theft.
[IMAGE: Photo of a PSA label marked “Altered/Trimmed”]