Consumer complaint received 2025-08-09 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: AL

Complaint narrative:
Date of XXXX : XX/XX/scrub>XXXX XXXX XXXX XXXX XXXX 
Amount Involved : {$800.00} Recipient : Scam account posing as my XXXX friend ( XXXX XXXX ) PayPal Transaction Type : XXXX XXXX XXXX  payment What Happened : On XX/XX/year>, I was communicating via XXXX XXXX with someone I believed to be my high school friend, XXXX XXXX, about purchasing a lawnmower and golf cart. I later learned her account had been hacked and I was speaking to a scammer. 

The scammer instructed me to send an {$800.00} down payment through PayPal XXXX XXXX XXXX I trusted PayPals security and assumed this option was safe because I believed I was sending to a friend. 

Within minutes of sending the payment, I became suspicious when the recipient asked me to send a screenshot of my PayPal receipt ; something my real friend would never need. I immediately called PayPal customer service to stop the payment. 

Actions Taken : XX/XX/year>XXXX XXXX XXXX. Sent {$800.00} via PayPal XXXX XXXX XXXX to the scammer. 
Within minutes Called PayPal customer service to stop the payment. The first representative said they would file a claim and stop the payment. 
Shortly after ( within XXXX minutes ) Received an email from PayPal stating the case was closed because it was an authorized transaction due to the XXXX XXXX XXXX XXXXXXXX 
Same evening Called PayPal again. The second representative told me that because the payment was sent from a trusted device, it was considered authorized and could not be reversed. 
XX/XX/year> Filed a police report with the XXXX of XXXX ( Report # XXXX ). 
XX/XX/year> Contacted my bank and placed a stop payment on the {$800.00} transaction, paying a {$30.00} fee. 
Current PayPal has placed a negative balance of {$800.00} on my account, saying I still owe them the money even though I acted immediately and the funds never left my bank. 

Why Im Filing a Complaint : I was not clearly informed that XXXX XXXX XXXX payments remove all fraud protections. 
I acted within minutes of sending the payment, yet PayPal refused to stop it despite having the capability to do so in other situations. 
I was misled by inconsistent and contradictory information from PayPals customer service.

PayPals mobile app lacks a confirmation warning that clearly informs users that XXXX XXXX XXXX payments have no fraud protection before the transaction is finalized. 
The fact that they could have stopped the payment under other transaction types but refused in this case makes me feel my money was not secure with PayPal. 

Requested Resolution : 1.Remove the {$800.00} negative balance from my account. 
2.Implement a clear, unavoidable warning screen before sending XXXX XXXX XXXXXXXX XXXX XXXX stating that these transactions have no fraud protection. 
3.Improve dispute and fraud reporting support, especially for cases reported within minutes of the transaction. 

Attachments Provided : Police report Screenshots of XXXX conversation with the scammer PayPal transaction record

Company response to consumer: Closed with explanation