Consumer complaint received 2024-03-06
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc (MO)

On XX/XX/XXXX, I was scammed by a man with an XXXX accent purporting to be from XXXX Customer Service. The fictitious phone number XXXX ( XXXX ) XXXX was listed online under a XXXX link. I was trying to figure out how to open an old XXXX account which I hadnt used since XXXX. After about XXXX minutes on the phone, I understood he was a scammer, so I abruptly hung up. At that point and unbeknownst to me, they had scammed me out of {$1400.00} on XXXX XXXX, and were in the process of stealing {$1200.00} through Venmo, and {$2000.00} through PayPal. Had I not hung up at that time, the scammer would have completely cleaned out my bank account. When I hung up and wouldnt answer their return call, I received three text messages from the scammer which I believe I shared with PayPal. These are verbatim : # 1 text : " XXXX if you keep the money with you then we have to take strict actions against ou '' # 2 text : " we just want our money back '' # 3 text : your paypal will get destoyed as well '' The scammer was so convincing during the scam that he convinced me I had scammers trying to get into my XXXX, Venmo, and XXXX, and that as part of the clean-up I needed to transfer specific amounts to my daughter and have her send those monies directly back to me through Venmo and XXXX. 

After I hung up on the scammer, I called my bank to restrict my checking account. I was too distraught to do anything further that afternoon on XX/XX/XXXX. On XX/XX/XXXX, I spent 3 hours at my bank closing my checking and savings accounts and opening new ones. It's at this point that I noticed {$2000.00} of the scammer 's money was in my checking account, which I hadn't realized when I received the scammer 's three texts. This was the money they were talking about in their texts. My banker also pointed out that {$1400.00} had been taken out of my account by XXXX XXXX. I believe {$1200.00} was also shown deposited in my checking account via Venmo. However, this amount had only been digitally deposited. I was called by Venmo and asked to return the {$1200.00} several days later. I checked my bank records and determined I did have {$1200.00} in my account and that the Venmo phone number was legitimate, so I returned this amount to Venmo. 

PayPal, however, sent {$2000.00} to my checking account per the scammer. When I hung up on the scammer, he couldnt complete his crime, and the amount stayed in my account. The afternoon of the XXXX, I received an email from PayPal, stating there was a dispute about the {$2000.00} sent to me by the scammer ; that the buyer had filed a case. ( I have never been a seller of anything online. ) At this point, I still did not quite understand that there had been various monies sent to my checking account by the scammers. PayPal requested that I return email them what I knew. I responded that these people were scammers ; that they had purported to be customer service representatives of XXXX ; that I did not authorize this transaction, and that the scammers PayPal accounts should be investigated and/or terminated. 

The next day on XX/XX/XXXX, I received an email from PayPal as follows : Hello, XXXX XXXX PayPal We've decided the case in your favor If there was a hold on this transaction, it has been removed. 
Transaction details Case ID XXXX Buyer 's name XXXX XXXX XXXXXXXX XXXX email XXXX Buyer 's transaction ID XXXX Transaction date XX/XX/XXXX Transaction amount {$2000.00} USD Your transaction ID XXXX Dispute amount {$2000.00} USD I was also sent the email PayPal sent the scammer : We completed our review of the case outlined below. 
Unfortunately, we are unable to reimburse you because the transaction was not covered under PayPal Seller Protection for the following reason ( s ) : Other. 
Case detail Sender 's email XXXX Sender 's name XXXX XXXX XXXXXXXX XXXX transaction ID XXXX Your transaction ID XXXX Transaction date XX/XX/XXXX Transaction amount {$2000.00} USD We have charged you a Dispute Fee of {$15.00} USD, since your account was categorized into Standard Dispute Fee tier. For more details about the Dispute Fee, please see our User Agreement. 

At that time, my thoughts were, Okay, the scammer took {$1400.00} from me via XXXX, and now I seem to have {$2000.00} of the scammers funds via PayPal in my account. Thank XXXX I hung up the phone when I did because it stopped the scammers before they could steal more money from me. 

Two days later, I was going through my apps. I closed XXXX, thought I closed my old Venmo account which then showed a XXXX balance, and noticed my PayPal account had a negative balance of $ XXXX. I thought perhaps the scammer had continued to use my PayPal account to charge more items. I immediately contacted PayPal to see what was going on. PayPal charged me a dispute fee of {$15.00} just for contacting them about this negative balance. 

Next without notifying me, PayPal reversed their decision. I found out on XX/XX/XXXX, ten days after the scam and after many emails back and forth with PayPal, that the reason for the reversal was that the scammers bank called PayPal to appeal PayPals decision the VERY NEXT DAY, on XX/XX/XXXX. This is a bank institution that probably makes calls like this ALL THE TIME for the scammerwhich says to me the scammers bank knows their customer is a scammer. Could PayPal know this as well? The dispute fees PayPal collects in cases like mine may represent a revenue stream for them. They were pretty quick to reverse their decision on me! Rather than contact me about this reversal or allow me to provide my banking records which would show I was scammed, PayPal kept the reason for its reversal from me for ten days after the scam took place. ( I made the call and worked my way up through three customer service reps to finally get the reason. The reversal was made AFTER I informed PayPal they were dealing with a scammer, after PayPal made the initial decision in my favor, after I told PayPal about the texts which I received after hanging up with the scammer, and after I told PayPal I had never been a seller of anything on the internet. 

I do have banking records that will show the movement of money in my account on XX/XX/XXXX, and the Venmo transfer to my account, which I returned to them. My banker could speak to these money transfers as well. If needed, I have all the emails back and forth to PayPal. Should the bureau want these, you have my information. 

Thank you!