Consumer complaint received 2026-03-09 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: CT

Complaint narrative:
am writing to file a formal complaint and to request reconsideration of the denial of my fraud claim involving my PayPal account. My PayPal account was compromised by an unauthorized third party who gained access without my knowledge or consent. After gaining access, the perpetrator changed critical personal information on the account, including the social security number, email address, and phone number associated with the account. Following these changes, the perpetrator conducted a large number of cryptocurrency transactions, transferring funds into accounts that are not tied to me in any way. Despite these clear indicators of account takeover and fraud, PayPal has refused to recognize these transactions as fraudulent. I have been informed that my claim was denied on XX/XX/year>, on the basis that the transactions were deemed authorized. This conclusion is inconsistent with the facts, as the account was clearly altered by an unauthorized party and the funds were transferred to accounts that do not belong to me. On multiple occasions, I requested from PayPal a complete and legible transcript or record of the fraudulent transactions. However, the only printout provided has been illegible and therefore unusable for my records or for any further investigation. This failure to provide clear documentation has further hindered my ability to understand and contest the activity on my account. On XX/XX/year>, when I contacted PayPal regarding the denial of my claim, I was informed by an agent that an appeal would be initiated. However, based on subsequent communications and the lack of any substantive response or case updates, it appears that no proper appeal has been processed. Instead, I have effectively been given the runaround, without a meaningful review of my situation. Given these circumstances, I am formally requesting that PayPal reconsider and reopen my fraud claim. The following facts clearly support that these were not authorized transactions : The social security number and email address on my account were changed without my authorization. The phone number on my account was also changed, further indicating an account takeover. The funds were transferred via cryptocurrency transactions into accounts that are not associated with me, which strongly indicates fraudulent activity and not legitimate use by the account holder. These are classic indicators of identity theft and account compromise. It is unreasonable to treat these transactions as authorized when the underlying account information was altered by a criminal, and when the funds were deposited into third-party accounts with no connection to me. Accordingly, I request that PayPal : Reopen and fully investigate my fraud claim, treating this matter as an account takeover/identity theft incident ; Provide a clear, legible, and complete transaction history for all disputed transactions ; and Credit back the funds lost due to these unauthorized transactions, in accordance with applicable consumer protection laws, PayPals own policies, and industry standards for handling fraudulent activity. I am asking that PayPal provide me with written confirmation that my claim has been reopened and that a thorough investigation is underway. I also request a written explanation of your final determination and the basis for any decision reached. Thank you for your prompt attention to this serious matter. I expect a timely, good-faith review of my complaint and look forward to your response.

Company response to consumer: Closed with explanation