Consumer complaint received 2026-03-01 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: OH

Complaint narrative:
I. Subject : Formal Complaint Against PayPal , Inc. for Gross Negligence, Systemic Policy Failures, and Bad Faith Actions. FBI IC3 Case Number : XXXX The Initial Fraud by the Merchant : I engaged in XXXX transactions with a merchant I believed to be a legitimate gaming provider. After I won, the merchant refused to pay out my winnings and I discovered they were an unlicensed, unregulated, and fraudulent operation. XXXX. My Legitimate Use of PayPal 's Buyer Protection : I contacted PayPal to report the fraud and followed their exact procedure to dispute the transactions. These dispute cases remain " open for review. '' XXXX. The Merchant 's Criminal Response within PayPal 's System : In response to my legitimate disputes, the merchant committed multiple felonies using PayPal 's platform as a tool : XXXX. Aggravated Identity Theft : Submitting my stolen Driver 's License number as a " shipping tracking number. '' XXXX. Submission of Stolen PII : Uploading a full, unredacted image of my stolen Driver 's License as fraudulent " proof of delivery. '' XXXX PayPal 's Grossly Negligent Process and Confession of Bad Faith : My attempts to resolve this have been met with a catastrophic failure of PayPal 's duties. On a recorded call on [ Date of your most recent call ], a representative made a series of admissions that reveal a fundamentally broken, arbitrary, and bad-faith system : XXXX. Admission of Merchant 's Failure : The representative explicitly agreed that the merchant submitted fraudulent evidence and had therefore " failed to meet the burden of proof. '' XXXX. Confession of Arbitrary Inaction : When I asked why the disputes weren't closed in my favor, she confessed it was because PayPal 's investigators " don't understand WHY '' the criminal submitted my ID. This proves they stall resolutions based on their own confusion, not on evidence. XXXX. Confession of Willful Blindness : She stated my disputes " still might not be in my favor, '' admitting that PayPal 's policy allows them to ignore a merchant 's XXXX conduct and failed proof. XXXX. The Ultimate Confession of Bad Faith : The exchange culminated in this stunning admission. I asked, " Since he committed fraud ... that makes all of my XXXX transactions illegitimate, correct? '' The representative replied, " Yes, correct. '' I then asked the only logical follow-up : " So that would entitle me to all transactions being refunded, correct? '' Her answer was a blunt " No, '' after which she became rude and terminated the call. Conclusion : PayPal has confessed on a recorded line that : The merchant committed fraud and failed to provide proof. This fraud renders all XXXX of my transactions illegitimate. Despite all transactions being illegitimate, they have a policy of denying a full refund. When confronted with the complete logical breakdown of their own position, PayPal 's employee ended communication. This is a confession of acting in bad faith. Their system is not just broken ; it is a sham designed to protect their bottom line, even when they admit their customer is the victim of a crime and that all transactions are illegitimate. I demand immediate regulatory intervention.

Company response to consumer: Closed with monetary relief