Consumer complaint received 2026-05-14 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Paypal Holdings, Inc
State: KY

Complaint narrative:
I am filing this complaint regarding XXXX failure to properly investigate unauthorized transactions reported on my account on XX/XX/XXXX and provide to me valid proof and reason for denying my dispute and appeal to the dispute. On XX/XX/XXXX, I submitted a detailed written dispute to XXXX after already contacting XXXX by phone on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. During those calls, I received inconsistent and incomplete information regarding the dispute process and required next steps. On XX/XX/XXXX, I received email notification XXXX denied my dispute without supporting documentation on the basis of their determination. I called on XX/XX/XXXX to get more information and was told I could only appeal the dispute determination, so appeal was opened. On XX/XX/XXXX, I began receiving emails from XXXX that indicated my account has been sent to collections, with no mention of acknowledging the open appeal to my dispute denial from XXXX. I called on XX/XX/XXXX, but the representative simply told me I needed to wait for the appeal process to play out. On XXXX, I called XXXX & received new guidance to email supporting documentation to XXXX and XXXX. I sent supporting documentation that email address that evening. I continue to receive daily alerts that XXXX wants to collect {$490.00} that they paid on my behalf ( they took the additional {$10.00} from my XXXX account, so it was 'funded ' ). On XX/XX/XXXX, I answered my phone when XXXX XXXX called me. They told me my appeal to the dispute was closed on XX/XX/XXXX. I was never notified of this via email or phone, or within the XXXX app. Additionally, when I spoke to the representative on XXXX, they never told me the appeal was finalized. I'm attempting XXXX more time on XX/XX/XXXX by resubmitting my email to their online document upload portal at the instruction of the XXXX representative I spoke with today. On XX/XX/XXXX, the following transactions were unauthorized and not initiated or approved by me : {$100.00} sent to XXXX at approximately XXXX XXXX EST {$200.00} sent to XXXX at approximately XXXX XXXX EST {$200.00} sent to XXXX at approximately XXXX XXXX EST Additional attempted transactions to XXXX were declined shortly afterward at XXXX & XXXX, including attempted charges of {$500.00}, {$300.00}, {$200.00}, and {$100.00}. These transactions occurred immediately after I was deceived through a fraudulent impersonation/social engineering scam while using XXXX in which I unknowingly provided SMS verification codes to a fraudulent party posing as part of a XXXX account verification process. I did not knowingly authorize XXXX payments or authorize another person to access or use my XXXX account. My PayPal account was also compromised, but PayPal found the unauthorized {$500.00} charges fraudulent and settled my dispute within approx XXXX hour. I provided all of this information with proof to XXXX via phone as well as through their email XXXX. At the time of the unauthorized activity : I remained in possession of my phone and devices. I did not intentionally share my XXXX credentials. The transactions were inconsistent with my normal account activity. Immediately after discovering the fraud, I took extensive mitigation steps, including : Reporting the fraud to XXXX Closing/freezing the Venmo account Contacting my bank and XXXX Replacing XXXX payment methods Changing passwords and securing accounts Opening fraud and identity monitoring protections. I also submitted supporting evidence, including screenshots, fraud alerts, call logs, dispute records, and documentation showing PayPal separately determined related activity to be unauthorized and resolved a connected dispute in my favor. I've also filed a police report regarding the online fraud and XXXX XXXX incompetence with my local police department. XXXX has the police report ID # per my last notification to them today. Despite the volume of evidence and prompt reporting, XXXX has denied or failed to properly resolve my dispute without providing a meaningful explanation of : what evidence was reviewed, how the determination was made, whether login/IP/device records were analyzed, or what investigative steps were taken. I am requesting CFPB review because XXXX failed to conduct a reasonable and transparent investigation into clearly disputed unauthorized electronic transactions. They have now frozen my XXXX account & have put me into Collections. I request that XXXX : Reopen the investigation Conduct a full manual review of the evidence submitted Review associated login, IP, authentication, and recipient activity records Provide a detailed explanation to me of its determination with all of the supporting documentation I request above Remove me from Collections & unfreeze my XXXX account Reimburse the unauthorized transactions ( {$10.00} ). Disputed amount : {$500.00}

Company response to consumer: Closed with monetary relief