Consumer complaint received 2021-05-12
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc (FL)

I have a dormant Paypal account since XXXX, I never had a business and it was largely used to make safe online purchases. 


XX/XX/XXXX : I logged onto my PayPal account to check my credit account on XX/XX/XXXX. To my surprise there was nearly {$25000.00} as 'money in '. Looking through the transactions, there were multiple deposits from a " XXXX XXXX '' and subsequent withdrawals in small increments onto a debit card ( VISA ending in XXXX, which is not my card ). ( See document 0 and summary of charges document 0A ). 

Near XX/XX/XXXX, there are similar deposits from a XXXX XXXX however I changed my password before any withdrawals could be made. Later on, those two deposits were charged back. 

I deleted this card ( VISA XXXX  ) out of my account ( see document 1 ). I disputed multiple problems via the website including additions of email addresses, physical addresses and phone numbers off of my account. 

Furthermore, I checked my email why I was not informed on this. I saw that all the email notifications were sent to trash via an automatic filter ( someone had my email login ). 


XX/XX/XXXX, XXXX XXXX, XXXX : I disputed all the withdrawals from my account on the debit card through the online app, and within a few days every single dispute was denied and I was given a generic email stating " The transactions are consistent with your paypal activity. ( see document 2 ) XX/XX/XXXX Then, about a week later " XXXX XXXX '' disputed the deposits he made to my account and Paypal left a ( approximately ) {$19000.00} debt on my account as unauthroized use. ( see document 3 ) I called Paypal ( XX/XX/XXXX, unfortunately did not think to get representatives name/ID ). When they went through they mentioned that there were numerous IP addresses being used to make these deposits and transfers. Furthermore they noted someone had added their own address/email to my account ( which I had deleted earlier, however they have access to see all of it XXXX. She appealed the denials and opened the case. The very next day I got all denials to the appeal. ( see document 4 with case update and subsequent denials ). 


XX/XX/XXXX : representative name : XXXX ( case : XXXX ) I called back ( 2nd time ) and spoke with another person and had similar conversation as with the first, and again was told it would be reviewed. When I checked PayPal, the case was closed despite XXXX telling me there would be a manual review. I never got an email confirmation. ( see document 5 XXXX XX/XX/XXXX : representative ; XXXX ( supervisor, reference number XXXX ) I called back ( 3rd time ) and again discussed the case. After some review, the initial representative told me because the case was appealed twice there was nothing they could do and I could report to local law office. I demanded to speak with a supervisor, which I was eventually transferred to ( XXXX  ). The supervisor saw the inconsistencies and yet again sent it to the 'back room for manual review. I did get an email confirmation this time however. I also emailed XXXX per their instruction to get further information on the denial documentation, they responded XX/XX/XXXX stating that the IP addresses were consistent with my activity ; however I have explained over and over that this is likely a spoofed IP address. ( See document 7 and 7a ) XX/XX/XXXX : representative : XXXX XXXX reference XXXX ) I called back ( 4th time ) and spoke with another supervisor who tried appealing the case in a different manner. The next day I got an email that some of the transactions were reversed and I did see that in my Paypal ( about {$5000.00} refunded ), however there was still about {$14000.00} which was negative. I figured they were working the transactions one by one and it would take time. ( See document 8 ) XX/XX/XXXX On XX/XX/XXXX, I got yet another generic email that the transactions are consistent with my account ; however, they still refunded part of the fraud. ( see document 9 ) I call again ( 5th call ) and ask to be transferred directly to supervisor : XXXX XXXX Case ID XXXX ). Initially, she tells me that the case was manually reviewed and was denied. I then ask that if it was denied, how can they reverse {$5000.00} of transactions Im disputing and deny the other {$14000.00} which is transferred to the exact same debit card. Then I went through the entire story again. She saw the IP addresses, the new numbers/addresses on my account and again went through all the transactions in question with me. She also found that XXXX XXXX PayPal account was compromised and therefore the chargeback was from his bank. So the cyber criminal has to be a 3rd party ( besides me or XXXX XXXX XXXX. She opened/appealed the case again. She told me she will put detailed notes for the manual review. Upon seeing the documentation, there is no information on it. ( see document 10 ) I also asked if she can see what bank and what name the debit card ( ending in XXXX ) is from. She states the card is under my name - XXXX XXXX and is from XXXX XXXX  XXXX based in XXXX XXXX, CA XXXX. She said because the card was under my name, the transactions were likely closed as authorized. I called XXXX bank on XX/XX/XXXX and told them the situation, they had no accounts with my name or social security number. 

XX/XX/XXXX I get an email at about XXXX that they tried to call me to get information they needed but were not able to reach me ( See document 11 ). I checked my phone logs and did not see any calls from Paypal or the usual XXXX area code that Paypal calls from. Furthermore, the bottom of the email goes on to say If you're unhappy with a particular purchase, we encourage you to work with the seller to find a resolution. This has nothing to do with my case and makes it seem like the auditor had no idea what it is regarding. 

XXXX, XXXX I call Paypal ( 6th call ) and get in touch with XXXX. I go through the story again. He tells me the reason all the charges were not reversed was because the initial person XXXX XXXX XXXX only put a few of the transactions on the report. I offered to go through each transaction number and he obliged. He stated he had every transaction that was under VISA-6768 and it was reported. He also asked me about bank account ending it XXXX. I told him that is my account and those transactions were valid. 

He gave me a case ID : XXXX A few minutes later ( after we hung up ), I get an email that the case was to dispute a withdrawal into my bank account ( ending in XXXX ). There was no information on the 14 transaction IDs that I told him to report. ( See document 12 ) Within minutes, I called customer support again. I eventually get to a supervisor XXXX XXXX, employee ID XXXX ). I go through the story of what just happened with XXXX. She gets condescending with me and tells me my appeal has been disputed multiple times and that means I am wrong. 

I asked multiple representatives to speak with XXXX again, however they refused to give me his ID number or a call back from him. 

FRAUDULENT TRANSACTION ID 'S : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Closing statements : Through the above detail, it is apparent there is serious lack of communication within the PayPal dispute/resolution department. Despite multiple attempts to rectify the problem from the beginning, they continue to close the case with little explanation or reason. This is a severe disadvantage to me, the consumer, as I have no way to physically see or present evidence in front of an auditor ( and they do not allow any discussion with the dispute team which makes decisions XXXX. I have been told my representatives there is nothing else we can do and then a supervisor is still able to open an appeal, only to be followed with a generic response and closure of case. 

Furthermore, at one point there is partial resolution ( Refunding of about {$5000.00} - which means they realized there was fraudulent activity ), all fees ( {$70.00} ) and then the rest denied ( possibly transfer of case from one person to another ). 

Even more concerning is the conversation/lack of resolution with XXXX on XX/XX/XXXX. I spent nearly an hour on the phone and went through each transaction. He even reversed the Paypal fees right in front of my eyes and then in the end reported an AUTHORIZED transfer I had made to my bank account ( not the debit card ). 

They tell me that because the IP addresses used during withdrawals are consistent with my IP address use, they are denying it. However I have explained over and over again I do not own a debit card ending in XXXX from XXXX bank XXXX and I have also verified with the bank there is no such account under my name ). In my opinion I feel Paypal should verify if this account is mine themselves, however no one has offered this solution. 

I have had greater and greater difficulty with resolving this situation as the more times it gets appealed, the more difficult they make it for me. 

I reported that VISA-6768 which has withdrawn all the funds is not my account since XX/XX/XXXX however they continue to hold me accountable. 

In my last attempt to rectify the situation, I have also sent this information to their CFO, CEO, claims department and service department. 

I do not feel I can get any more resolution through their claims department and am therefore asking for your help.