Consumer complaint received 2025-10-07 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
Subject : Formal Complaint Against PayPal Resolution Team Mishandling a Fraudulent Merchant Case There is a so-called merchant that I came across while I was browsing online a pop-up from them appeared, and I visited their website. I did not follow up with them or continue using the site after that. I knew it looked suspicious, so I took precautions and didnt engage further. 

However, this merchant was not a real merchant. It was a hacker, most likely located outside the United States. Their website is set up in a way that when someone visits and attempts to sign in or interact with their system, they can steal personal information without the users knowledge. 

Then at around XXXX XXXX, while I was asleep, this hacker used my stolen information and fraudulently took {$1.00} from my PayPal account under the false pretense of a " trial '' charge. 

When I woke up at XXXX XXXX, I saw an invoice from PayPal saying that I paid for a trial from this so-called merchant. I had no idea this charge was going to happen, and I never authorized it. I sent a screenshot to PayPal showing that I had no further interaction with the website since that first visit.

Later, PayPal sent me an email stating that the auto-payment for this merchant was canceled. I believed the issue was resolved and that I was safe from further fraudulent activity. 

But today, around XXXX XXXX, I received another message from PayPal stating that my claim was denied, based on a conversation with the merchant who is a known hacker. I then contacted PayPal again to explain the situation. 

Let me be clear : This merchant is not located in the United States. 

They do not have a real, operating website. 

When you click either on the merchant name XXXX XXXX or on the link https : //www.shoptrendmarkt.com, you get the same security warning from XXXX, stating that it is a dangerous link designed to steal personal information. 

If this hacker posing as a merchant manages to take a larger sum of money from someone's PayPal account, the U.S. government will not be able to track or arrest them, because they are operating outside U.S. jurisdiction.

When I made PayPal aware of this situation, I wasnt just protecting myself I was helping PayPal by identifying a serious threat on its platform. This should not be treated as a minor issue about money. 

While speaking with the PayPal representative, I asked them to click on the merchants website link shown inside PayPal. When they did, XXXX XXXX ( my internet provider ) immediately blocked the site and issued a warning that it is dangerous and can steal personal information. 

I took a screenshot of this warning and explained that the merchant is not just suspicious it is a confirmed fraudulent and malicious website. I asked the representative to close the hackers PayPal account or escalate the case to a manager who could take immediate action. 

Instead, I was told : The auto-payment is canceled. 

You dont need to worry. 

Our internal security will review it, and youll receive a response in XXXX  days. 

This is unacceptable. The hackers PayPal account is still active, which means they can continue to target other users just like they did to me. More people may get charged or have their data stolen. 

This is not about {$1.00}. 
This is about : A security breach Unauthorized access to my account PayPal allowing a hacker to remain active on its platform, despite receiving clear evidence Worse, when I tried to close my PayPal account, I was told that I couldnt because the dispute is still open so Im being blocked from protecting myself, while the hacker remains live on PayPal.

PayPal said they spoke with the merchant ( who is actually the hacker ), and the decision was based on that conversation. Yet PayPal has not provided any written evidence of what the merchant claimed. The transaction happened while I was asleep, and I flagged it immediately after I discovered it. 

The link https : XXXX is dangerous. Even the PayPal representative saw it blocked live by XXXX XXXX. Still, no action has been taken to suspend or close the account tied to that domain. 

What I Am Requesting : Immediate suspension of the merchant account tied to https : //www.shoptrendmarkt.com Escalation to XXXX management XXXX security leadership, not just a generic internal process A formal written explanation showing why my claim was denied and exactly what the so-called merchant told PayPal Assistance to close my PayPal account now, despite the dispute status A commitment that PayPal is actively working to prevent this type of fraud from harming other users This was not just a billing error or misunderstanding it was a targeted fraud attempt using PayPal as the tool XXXX And based on how this has been handled so far, it shows that PayPal is not taking this seriously enough.

I have screenshots, security alerts, and records of my conversations with your representatives to support every part of this complaint. 

Sincerely,

Company response to consumer: Closed with explanation