Consumer complaint received 2024-11-14 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: IN

Complaint narrative:
This complaint involves Venmo freezing my account, seizing {$4700.00}, and charging me {$140.00} for disputing what happened. I have the venmo dispute ID number if you need it, but the directions say not to include account numbers and names. 

I am the trustee of an elderly gentleman, who is very close to my family. On XX/XX/2024, he was the victim of a telephone scam. Because Venmo has a transaction limit of {$5000.00}, the scammer asked him to venmo a trusted person {$4700.00} and then ask the trusted person to purchase a visa card to send to the scammer. The scammer and the gentleman called me and asked me to do this. I was at the airport checking in for a flight and said I could not talk but would call the gentleman back shortly In the meantime, the gentleman had venmo 'd me {$4700.00}. After I got checked in, I called the gentleman and explained to him that he was being scammed. I then venmo 'd the gentleman {$4700.00} back to him. 

the gentleman also got another friend involved who did forward the scammer {$4700.00}. 

After this happened, the gentleman contacted his bank, XXXX XXXX, XXXX try to claw back the money that he was scammed out of. The bank contacted Venmo and on XX/XX/XXXX, I received the following email from Venmo : " We previously notified you that one of your senders opened a case for a transaction : The sender stated that they did not make this purchase. 

If you have any additional supporting documentation to help us resolve this case, please contact us at XXXX to provide any information you might have by XX/XX/2024 to help resolve this case. 

Please ensure all relevant information is provided within your initial response to help us resolve this case. 

Thank you for using Venmo. 

Please do not reply to this message. To get in touch with us, click Help & Contact. '' I responded to venmo what had happened and that I had returned the gentleman money the day he venmo 'd it to me. 

On XX/XX/XXXX, venmo sent the following email : " Hello, ****** Update on your Venmo case Dispute ID : XXXX XXXX XXXX : {$4700.00} USD Disputed amount : {$4700.00} USD Transaction date : XX/XX/2024 Sender name ********* One of your senders opened a case for this transaction. This means the sender has asked their financial institution to reverse the money for this transaction. We want to help you, and we are disputing this case with your senders financial institution. 


{$4700.00} USD has been debited from your Venmo account for the following reason ( XXXX ) : Other. 

We understand that you XXXX not have been expecting this chargeback. If this debit has caused your Venmo account to go negative, please log in to your Venmo account and add money to your account by visiting venmo.com/addfunds. 


If the financial institution decides the case in your favor, we'll notify you when the payment is returned to your Venmo account. 


We'll email you if we need any further information from you. '' Following this email, the gentleman contacted his bank and requested that my account not be frozen and not have {$4700.00} withheld from it. The Bank and the gentleman had multiple conversations with Venmo on approximately XX/XX/2024. The gentleman and his banker were interviewed by a venmo representative and they repeatedly asked them to unfreeze my account and to return the money that was forwarded. The gentleman called me on XX/XX/2024 and said that Venmo should reverse the freezing of my account and return the money it seized from me by XX/XX/2024. 

It is now XX/XX/2024, my account is still frozen with a negative balance due to {$4700.00} being seized and due to the {$140.00} dispute fee Venmo assessed against me. 

I request that my account be unfrozen, the {$4700.00} returned to my account, and the {$140.00} dispute fee to be reversed. 

I did not cause any fraud. I should not be penalized because I was sent {$4700.00} that I did not ask for and that I returned within an hour.

Company response to consumer: Closed with explanation