Product: Money transfer, virtual currency, or money service

On XXXX XXXX I noticed a XXXX friend had posted some things for sale. I was out of town and asked about a gold cart listed. She requested XXXX down. I sent that by PayPal since I was out of town. I immediately received a text from PayPal stating they noticed unusual activity on my account. The text also asked if I sent XXXX to and they listed a name. The name was NOT the name of the person I sent the payment to, it was someone I never heard of. I replied NO. The next text stated they would initiate a fraud investigation. I spoke to my XXXX friend and she stated she did not post the sale items and her account had been hacked by an unknown person. She reported the incident to the police. On XX/XX/2024 I checked my PayPal account and it did not show any fraud investigation was initiated, but it showed the money had been sent to the person I have never heard of and to a different email address than I had sent the initial money to. I reported the fraud to PayPal again on XX/XX/2024. XXXX minutes later I received an email from PayPal stating they investigated the claim and found the activity was not unusual, just opposite of their first text. I called PayPal and advised them for the XXXX time this was fraud. They told me they could not help me and I needed to call my bank. My bank advised me to put a stop payment on it as the charged had not shown up. On XX/XX/2024 I received an email from PayPal stating my charge was declined by my bank and I needed to settle the negative XXXX balance. I received a call from a PayPal representative stating I needed to bring my account to current. I explained the who situation again. During the conversation she stated " I see the email address we sent payment to was not verified by PayPal, they are supposed to be verified before we send payment ''. I will forward this up for review. I received numerous emails, texts, calls, trying to get me to bring my account to current. During this time I received a rebate check from another purchase and PayPal kept the XXXX and deducted it from my negative balance which I did not authorize. They have now sent my account to a collections company. The whole issue is PayPal noticed the unusual activity and I told them 3 times it was fraud and do not transfer any money. They sent the money anyway to someone I never heard of and to a different non verified email address that I did not Authorize. They have yet to show me any proof that the money was sent to the original email I intended to send it to, which that email address was fraudulent and I told them that as well. Then they stole XXXX from my rebate check to cover their mistake. Once I reported it as fraud, I had revoked any authorization to send the money. I never authorized a charge to the person and email address they sent it to. They made a mistake ( possibly fraud by sending the money after I told them not to ). I am not responsible for their mistake and they are responsible. I have responded to the collection agencies letter as well and placed a complaint with the better business bureau, which was not resolved due to PayPal refusing to admit wrong. After reading numerous XXXX  complaints on PayPal, this seems to be a normal issue with them. I have been using PayPal for over 24 years and never had any issues. I have never had any credit issues and I refuse to let them change that. This is cooperate bullying to cover their mistake and the incompetency within the company.