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What do I do if it says recipient account is closed?
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No, sorry, you didn’t get an order….this is a scam that’s been targeting mostly new sellers. And the reason you couldn’t reply to the message is because Etsy has deleted that account to protect sellers. Real orders show up on your dashboard, (in orders/shipping) in your shop payment account (under finances) and on your storefront. Etsy NEVER notifies a seller of a sale through messages. You should mark that message as spam. The real Etsy messages will be sent through the folder marked “from Etsy”.
Read the following:
https://community.etsy.com/t5/Announcements/New-From-Etsy-section-in-Messages/m-p/143722497
https://community.etsy.com/t5/Announcements/Protect-Your-Account-From-Scammers/m-p/143158945

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Re: What do I do if it says recipient account is closed?
What do you need to do?

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Re: What do I do if it says recipient account is closed?
Yes I got a order but when I tried to respond it said recipient account is closed what do I do?

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Re: What do I do if it says recipient account is closed?
is the order showing on your sellers dashboard on Etsy or did you receive a supposed message saying you had an order ?

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No, sorry, you didn’t get an order….this is a scam that’s been targeting mostly new sellers. And the reason you couldn’t reply to the message is because Etsy has deleted that account to protect sellers. Real orders show up on your dashboard, (in orders/shipping) in your shop payment account (under finances) and on your storefront. Etsy NEVER notifies a seller of a sale through messages. You should mark that message as spam. The real Etsy messages will be sent through the folder marked “from Etsy”.
Read the following:
https://community.etsy.com/t5/Announcements/New-From-Etsy-section-in-Messages/m-p/143722497
https://community.etsy.com/t5/Announcements/Protect-Your-Account-From-Scammers/m-p/143158945

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Re: What do I do if it says recipient account is closed?
Thank you I was so confused and worried.

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Re: What do I do if it says recipient account is closed?
It means that user was a scam artist. You have no sale showing, if you did have a sale it would show in your shop manager and you would not need to do anything to "finalise" a sale or receive the funds. Mark the message as spam, Etsy have already removed the account to prevent you responding. If you had answered, chances are you would have been ripped off.

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Re: What do I do if it says recipient account is closed?
I had an order, all legit on my dashboard. Got the funds and went ahead and made it. Then when I was about to ship it a few days later I realized that the account had been suspended and no longer existed. I chatted with Etsy (yes the regular help chat, here on their site) and they said the buyer had been suspended for policy violations and thus no longer could buy or sell on Etsy. But as it has been paid and I received payment I could go ahead and send it. Which I did, even though I was a bit wary.
Funny enough couple months later I get a 5star review for this order and it seems the account is back up and running.
BUT my order was a legit Etsy order, which shows up on your dashboard as an order. You are not showing any sales in your shop overview. If you get messages saying you need to give your email, or click a link to verify your (bank)account or use a QR code... those are all scams. Never ever give your information this way, Etsy already has it. So this most likely was a scammer and Etsy deleted their account. Thankfully. Only official Etsy messages are to be found in the "From Etsy" message folder, which you can sadly only see on the website or mobile browser, not the app. So always check if it is in that folder, if not then mark as spam.

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Re: What do I do if it says recipient account is closed?
My encounter is worse. I recieved a text that I needed to reply within 2 hours of reading otherwise my account would be banned. I even got an email. It's even in my messages on Etsy. I clicked the text and it directed me to a page were I needed to verify my bank information. Had to fill out my debit card, so I did. Then it said it was going to send me $1 to verify, next page said I needed to make a $200 dollar purchase which when I recieved the verification code the $200 would be returned. That's when I said, oh, oh. I put in my debit card number, oh no! What do I do?? I clicked off the link instantly. Now what? Guess I'll call my bank and warn them.

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Re: What do I do if it says recipient account is closed?
You need to call youtr bank immediately. They will probably freeze the account. Usually when this happens you will need to close that account and open a new one. Your bank can help you 24/7 so do not wait another minute.

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Re: What do I do if it says recipient account is closed?
Yes, do as @ThePurplePuppy advised. Cancel that card ASAP!! They will drain your account overnight otherwise.
For future, any messages that are truly from Etsy will appear in your Shop Manager>Messages in the section named From Etsy which appears third from the top under Inbox and Order Help Requests. If not there, the message is not from Etsy. This section may not appear in the app, so check your messages on the site.

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Re: What do I do if it says recipient account is closed?
If the message is from Etsy, it will also be in the "from etsy" folder on the left hand side, if it is not there, it is not from Etsy, mark it as spam, and do nothing else.
If you have already given information, contact your bank NOW, and let them know you have given out your card details in a phishing scam