Consumer complaint received 2026-01-07 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: FL

Complaint narrative:
Since XX/XX/XXXX PayPal and its agents had attempt to unlawfully collect the amount of {$1000.00} from me. This amount PayPal is trying to collect was from a transaction executed through a sophisticated fraud schemes done through a XXXX  site due to a breach exposed from sensitive personal information taken from XXXX XXXX accounts which affected about XXXX victims. I was XXXX of these victims. Here, I will explain in more detail of this experience : On XX/XX/XXXX I received a few emails and text messages from my XXXX account of a transaction that was just executed by cyberthieves whom stole most of my XXXX  assets along with a {$1000.00} transaction that was pending to be withdrawn from my bank account through PayPal. Immediately, I abandoned all I was doing that morning and logged into my XXXX  account to notice my stolen XXXX accounts and a pending transaction of {$1000.00} So, I immediately locked my account and contacted a XXXX  agent to inform of what happened and ask them to stop the pending withdrawn. At that moment the agent transferred me to a supervisor which them informed me, that even with a pending transaction they could not do anything because the transaction was waiting to finalize with PayPal, so I immediately logged into my PayPal account where I reported the {$1000.00} pending transaction as fraudulent in their resolution department and requested a stop to prevent the unauthorized activity from being executed. Them, immediately called PayPal to further inform that my account is being compromised. After explaining the situation to an agent, I was put on hold a few times and transferred to different agents that didnt appear to know how to handle or even confirming the stop of the fraudulent transaction. After being put on hold for long periods of times and being hang up multiple times, I requested to immediately speak to a supervisor, whom also didnt seem to know how to proceed, and ask me to hold while investigating my case. Unfortunately, every time I was put on hold, I was disconnected and hang up. I was nervous and I didnt want this Fraud to be withdrawn from my bank, because of the poor service and lack of effective communication with PayPal , I immediately logged into my bank account were effectively, the amount of {$1000.00} arrived and also kept as pending. Immediately, I called my bank which was the most professional efficient help I got that day, and after explaining the whole situation of what just happened, my bank agent put a stop/hold on that transaction. Within a few minutes I had lost thousands of dollars and I was relief that my bank was able to prevent further damages. After my bank secured my account, I called back PayPal to see if they could still stop the pending fraud I want all concerning this information ( collection agency, PayPal, XXXX, my lawyer ) to know that while Im trying to summarize the details of this incident, I really could not explain how unprofessional, insulting to injury, disrespectful and how carelessly PayPal handle this incident. I spend my entire day on XX/XX/XXXX trying to prevent cybercriminals from bribed overseas XXXX  staff to steal money and while trying to communicate with PayPal I had to freeze my personal accounts, change passwords and repeatedly explain multiple times to many different PayPal agents the situation, while been put on long holds, then been hang up multiple times. It was not until the late hours of that day when finally, a supervisor from PayPal informs me not to worry that they would take care of this to later find out that it was not so. Over the next few days from XX/XX/XXXX and throughout the middle of XXXX I had communicated with PayPal with no answers about why the transaction was not prevented. It was not until the end of the month when I find out that even after all efforts, PayPal didnt freeze this transaction and now wanted to collect this money from me. 
So, when I last communicated with a supervisor this last XXXX, I finally found out why they were not able to stop this transaction. According to this PayPal supervisor, the platform pays such transactions in advance. PayPal does not wait to withdrawn money from bank accounts! So, Im assuming that because of the way their system handles these transactions, they had lost money and were also a victim of this scheme. I was further informed that the fraudulent amount of {$1000.00} is not cover by their protection program plan or insurance. PayPal system is set to pay transactions in advance of withdrawing money from bank accounts. They pay ahead without even investigating or acknowledging a reported fraudulent transaction that just took place. So, all the efforts of trying to prevent a pending fraud on their platform and on the phone, through all their ineffective communication support did not work! And now, I was accountable for such payment!!! 
After finding out this information, I suggested the supervisor to inform their executives about these issues so they could further secure XXXX  transactions and probably confirm for approval with account holders before withdrawals. However, this PayPal supervisor sounded irritated by my suggestion and just wanted to get me off the phone. I kindly terminated communications with PayPal that day while I know that many cybercriminals are now using this platform to successfully perform financial fraud with long term and even permanent consequences to so many victims. In the meantime, PayPal has proven highly negligent, lacking adequate training protocols or qualified cybersecurity personnel to maintain its platform or to properly assist with fraud reports. PayPal has proven to be careless about protecting its account holders and by effectible declining pending fraudulent transactions. 
Today, AS OF XX/XX/XXXX I was sent funds of {$100.00} through my PayPal ( my Paypal account is not allowed to take funds from my bank but is viewable due to an ongoing lawsuit with XXXX  ) However, paypal didnt allowed cancelation by sender or me and appropriated such funds without our consent. 
I was a client of PayPal for many years ; I held them with great regards for the service they provided in advancing the way we move our money. But it comes with great disappointment that what was once a great digital payment platform, seems now an easy asset and prime target for hackers, scammers and cybercriminals. PayPal does not provide with effective customer service to its clients, transfer calls countless of times and hang up its phones. Apparently, because many of his agents or supervisors lack proper training, information and dont know which department they should transfer a client. In the meantime, PayPal has proven not to make efforts into improving its outdated security settings. 
I could no longer be part of a platform that ignores fraud, pay unauthorized fraudulent transactions in advance, does not put a stop on pending frauds even after countless reports and does not improve its platform to prevent these security issues. 

As of today, XXXX is still being investigated, but its platform would provide further information to collection agencies ( like yourself ) and my lawyer. I would also suggest that you get a hold of my PayPal countless recorded conversations and hang ups if PayPal could provide with it. In the meantime, I have to keep my PayPal account open for further legal records and research. 

May be known, that I refuse to be a victim again. I will not be subjected to further abuse. I will not be manipulated or be harassed into further demands of drafting money from my bank account to pay fraudulent unauthorized transactions executed by criminals from a platform ( PayPal ) that provides easy unsecured access and disregards timely reports of such unauthorized transactions. Such behavior is unlawful, harmful and will not be tolerated. I also demand that you update your records and comply with my rights under the Fair Debt Collection Practices Act. 
Last month I sent similar letter to the PayPal legal department via their site, which, until this day, received no follow up from their part. 
Assuming that XXXX XXXX is their response- I demand cease and desist from PayPal and XXXX XXXX XXXX. Providing that while Im taking appropriate legal actions against my stolen XXXX  accounts, and both parties continues requesting unwarranted fraudulent money collections, its my intent to further extent appropriate legal actions. 

Looking forward to a mutual understanding of these facts. 

Regards, XXXX XXXX

Company response to consumer: Closed with explanation