Consumer complaint received 2026-01-19 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Deposits and withdrawals
Company: Paypal Holdings, Inc
State: TX

Complaint narrative:
I am filing this complaint regarding PayPals refusal to provide buyer protection after I was the victim of a confirmed tracking-number fraud / false delivery scam involving an {$730.00} purchase made on XXXX and partially funded through PayPal. 

I purchased a XXXX XXXX XXXX XXXX  on XXXX XXXX Payment was made using a combination of PayPal balance/credits and a linked credit card. The seller provided a USPS tracking number that showed the package as Delivered in my ZIP code. I never received the item. 

Because I suspected fraud, I contacted USPS directly and requested verification of the tracking number. USPS conducted an internal review and confirmed the following facts : The package associated with the tracking number weighed only XXXX ounces The item I purchased weighs over XXXX pound ( XXXX oz ), and with the accessories included in the listing would reasonably exceed XXXX pounds ( XXXX oz ) The package was not delivered to my address nor was addressed to me or my address. 
USPS provided photographic evidence of the actual package, which clearly shows it was not addressed to me USPS advised that while they can not disclose the recipient address to me for privacy reasons, they can confirm to PayPal or any investigating party that the package was delivered to an address other than mine These facts conclusively demonstrate that the seller shipped a low-weight, unrelated package to another address in my ZIP code solely to obtain a Delivered tracking status. This is a well-documented fraud method commonly referred to as tracking-number fraud, where sellers exploit automated dispute systems by providing a tracking number that does not correspond to delivery to the buyer. 

I opened a PayPal dispute for Item Not Received and provided all of the above evidence, including USPS confirmation, package photographs, and explanation of the weight and address discrepancy. Despite this carrier-verified proof, PayPal denied my claim, stating that the seller provided a tracking number showing delivery. 

PayPals decision appears to rely exclusively on the existence of a tracking number marked Delivered, without considering authoritative carrier evidence that the package was not delivered to me and could not possibly contain the purchased item due to the extreme weight mismatch. No meaningful manual review appears to have occurred. 

I attempted to escalate the issue through PayPals support channels and requested manual or supervisory review, but the outcome remained unchanged. PayPal has effectively refused to investigate beyond automated criteria, leaving me without protection despite clear third-party evidence of fraud.

I acted in good faith at all times, maintained a consistent item not received claim, and provided objective carrier verification. PayPals refusal to consider this evidence undermines the purpose of its buyer protection policies and allows a known fraud method to succeed. 

I am requesting that the CFPB review this matter and require PayPal to conduct a proper manual investigation, consider the USPS-verified evidence, and reverse the PayPal-funded portion of this transaction due to confirmed tracking-number fraud and false delivery.

Company response to consumer: Closed with monetary relief