Consumer complaint received 2020-09-21
Company: Paypal Holdings, Inc
State: TX
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Fraud or scam

Complaint:
On XX/XX/XXXX I was contacted via email " XXXX '' by someone claiming to be " XXXX XXXX - HR Process Specialist at XXXX XXXX '' regarding " Social Media Manager '' position at mentioned company. They had listed series of questions about my familiarity with the position, my previous experiences and behavioral questions and wanted me to respond and email them back. I did so on XX/XX/XXXX and they replied on XX/XX/XXXX stating they have decided to move forward with my application and extend an offer. They had also asked for my mailing address and phone number. I saw their email on XX/XX/XXXX and expressed my interest to proceed. 

Then, someone named " XXXX XXXX '' from " XXXX '' emailed me on XX/XX/XXXX, congratulated me and sent me the job offer attached to the email. I looked up this person on XXXX and confirmed he is a HR Manager at XXXX XXXX. The job offer covered the usuals in a job offer, went over pay rate for training and afterwards, etc. and had company logo and address and also watermarked with company name and logo. They wanted me to sign and return with a photo of my driver 's license. 

I signed and sent my DL the same day and then later that day XXXX XXXX emailed me and stated that they will send me a check for me to order the items they had listed ( computer and software packages ) from their vendors to set up my workstation. She/they emailed me again on XX/XX/XXXX and confirmed they are going to mail the check. They did so via XXXX Overnight ( origin address XXXX XXXX XXXX, XXXX XXXX, MO XXXX ) that day and I received a check on XX/XX/XXXX morning in the amount of {$4900.00}. I confirmed to XXXX XXXX that check was received the same day and I was asked to deposit the check and send them the receipt. I deposited the check via XXXX mobile app and it became available immediately. I sent the receipt same day, then XXXX emailed me the next day on XX/XX/XXXX and asked me to be in contact with them via XXXX App ( user : @ intpaper ) as that is their communication platform at the company. 

I created an account on Telegram and messaged the mentioned user and introduced myself. Someone named " XXXX XXXX '' messaged me back and stated she is a Human Resource Manager at XXXX XXXX and was assigned to guide me on the next steps toward the training process. And, asked if I can start the training the next which I said yes. 

Then, she said she will inform the department and asked if I have any instant payment app, as the vendor needs to confirm payment before shipping the workstation equipments. I responded with Venmo and XXXX. She then asked me to deposit {$2000.00} via Venmo to user @ XXXX - XXXX XXXX with memo : TRN-EQ and to share receipt with her, which I did. Then she asked to send {$1100.00} via XXXX to XXXX XXXX - XXXX with memo : App-WS and share receipt. XXXX did not allow me to send more than {$500.00} and she said it is fine and we can transfer the rest tomorrow. Then, she got back to me and asked to cancel the XXXX XXXX and instead to try to send {$1100.00} via XXXX to XXXX XXXX - XXXX to see if with this user it goes through, again XXXX did not allow to send more than {$500.00} which I transferred and shared the receipt. She then asked me to be on standby for next steps. 

The next day on XX/XX/XXXX, I logged in to my bank account and realized the check was returned and my account has negative balance since the {$2500.00} was processed. 

I contacted XXXX immediately, they informed me that this has been a scam and the check account is cancelled/frozen and the only option is to dispute two transactions and contact Venmo as well. Since XXXX is through XXXX, it can be disputed only through XXXX. I filed two disputes with XXXX. Then, I contacted Venmo via email ( as phone call was not responded due to COVID ). Venmo replied to me later that day, stating that " Based on the information you have provided, it sounds like the person you were transacting with did not fulfill their end of transaction and there is nothing we can do. We recommend to contact the person directly. If you are unable to, you may consider filing a report to local law enforcement. They can request for information we have on file. '' I filed a report to IC3.gov, local police ( my county Sheriff 's office ), Consumer Protection and Federal Trade Commission and as of  today ( XX/XX/XXXX ) still waiting to hear back from them. 

Lastly, XXXX closed both my disputes as authorized transactions. I believe, XXXX did not do their due diligence in protecting me as a consumer of their banking services for over 7 years. I do understand how convenient the mobile deposit is, however, if the fund had not been made immediately available, or if the verification process of the check account had not taken 2 days, I would have not transfered those amounts to the scammers. Further, it seems to me there is no consumer protection built in to Venmo process and its integration with banks such as XXXX. I contacted both companies in less than 24 hours from the time of transfers and neither offered me any protection whatsoever. 

I have been looking for a job for over 5 months now and had only {$2000.00} in savings. I am only hoping that all these reports will find a resolution for this matter and appreciate CFPB looking into this. I have maintained all records and can provide upon request.

Company response to consumer: Closed with explanation