Consumer complaint received 2023-11-29
Company: Paypal Holdings, Inc
State: CA
Product: Money transfer, virtual currency, or money service
Sub-product: Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem

Complaint:
Dear Sir/Madam, I am writing to express my grievance against PayPal regarding their handling of a fraudulent transaction on my account, which has led to significant financial loss and distress. This complaint highlights PayPal 's failure to conduct a thorough investigation into the fraudulent activities involving my account. 

Incident Overview : On XX/XX/XXXX, I inadvertently contacted a fraudulent tech support line, assuming it was PayPal 's official customer service. During a desktop sharing session, under deceptive pretenses, I was tricked into sharing my debit card information. This led to unauthorized transactions : {$980.00} transferred into my PayPal account, with {$890.00} subsequently sent to XXXX XXXX XXXX. Additionally, {$1800.00} was illicitly withdrawn from my bank account into PayPal. I detected the fraud, immediately ceased the session, and reported the incident to PayPal. I was informed by PayPal that they were able to freeze the transaction and will not release it to XXXX XXXX XXXX until a thorough investigation is concluded. 

Inadequate Investigation by PayPal : Despite my immediate action and a dispute case ( Case ID : XXXX ), PayPal concluded on XX/XX/XXXX that the transactions were consistent with my payment history. This finding is grossly erroneous. I have never engaged in any transactions with XXXX XXXX XXXX. Had PayPal conducted a proper investigation, they would have likely discovered that XXXX XXXX XXXX 's account was potentially created on the day of the fraudulent activity. Furthermore, the account likely received numerous incoming transactions, some of which may have been disputed. Such patterns are clear indicators of fraudulent activity, which PayPal seemingly overlooked. 

Impact and Request for Resolution : This situation has resulted in a financial loss of {$890.00}, including the {$890.00} sent to XXXX XXXX XXXX and a {$4.00} transaction fee. The lack of a comprehensive investigation by PayPal has caused me significant emotional distress and eroded my trust in their services. I am seeking a full refund of the said amount and demand a detailed explanation from PayPal regarding the lax nature of their investigation. 

I also request the Consumer Financial Protection Bureau to scrutinize PayPal 's practices in handling such fraud cases. It is essential to ensure that PayPal and similar institutions have robust mechanisms to protect consumers from similar frauds in the future. 

The handling of my case by PayPal has highlighted serious deficiencies in their fraud detection and customer protection protocols. This incident underscores the need for more stringent regulatory oversight in the digital finance sector to safeguard consumer interests. 

Thank you for considering my complaint. I am prepared to provide any additional information or documentation necessary to assist in this matter. I look forward to a prompt and effective resolution. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation