Consumer complaint received 2026-04-24 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: KS

Complaint narrative:
Someone performed an account takeover of myPayPal account, changed email to XXXX and phone numbers. and proceeded to buy and sell cryptocurrency ( XXXX ) using funds from my bank account XXXX XXXX. This started on XX/XX/XXXX when they bought {$300.00} of XXXX, with fees Paypal withdrew {$300.00} from my XXXX account. I found this transaction on XX/XX/XXXX and not realizing it was fraud, And the XXXX XXXX was still sitting in my PayPal account, I sold it and transferred the remaining balance back to my XXXX checking account. At this time I did not realize that the email and phone numbers had been changed. On XX/XX/XXXX another withdrawal from my XXXX account by PayPal occurred in the amount of {$910.00} from an unauthorized purchase of XXXX XXXX. The XXXX was then sold ( not by me ) on XX/XX/XXXX for {$740.00}. That transaction led to a purchase of XXXX ( Paypal digital currency ) of {$450.00}, {$150.00}, {$120.00} in separate transactions on XX/XX/XXXX. That same day {$10.00} XXXX was converted or sold, to actual US dollars. A purchase from XXXX was processed that same day of {$10.00}. And another purchase of XXXX was processed of {$700.00} on XX/XX/XXXX and was subsequently sold on XXXX XXXX listed as two transactions of XXXX and XXXX. On XX/XX/XXXX XXXX Paypal digital gift cards ( XXXX gift cards ) purchased for a total transaction of {$400.00} ( 4 {$100.00} gift cards ). These were purchased with the proceeds from the crypto sell. On the same day two transactions of {$49.00} each were purchased with funds drawn from my XXXX XXXX checking account by PayPal, also for PayPal digital gift cards. There was an attempt at a XXXX purchase on XX/XX/XXXX for {$14.00} that was reversed. I noticed all this fraudulent unauthorized activity on XX/XX/XXXX and filed a report with PayPal. I contacted my bank on XX/XX/XXXX. I also received letters from XXXX XXXX that on two occassions someone had tried to open a PayPal credit card in my name but were denied due to my decision to place a freeze on my credit several years ago. While filing a case with PayPal regarding all this fraudulent activity, they asked me if i added a gift card to this address on XX/XX/XXXX. The address listed was XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. I did not and do not know this address. I currently have been restored the money I believe due to my bank reversing those transactions but Paypal is now denying that there was an account takeover and there is a negative balance in my PayPal account. After multiple ongoing attempts at resolution from PayPal they are requesting me to refund {$650.00}. They denied all the fraudulent activity and when i requested the details of the investigation they provided one IP address. According to my research Paypal can not use IP addresses as a tool to say the activity was found to not be fraudulent which is what they are doing to me. The XXXX has told banks since XXXX that IP addresses evidence is inadequate in deniability of fraud. IP addresses are shared by hundreds to thousands of unrelated internet users. The XX/XX/XXXX XXXX Authentication Guidance reinforces that IP address authentication alone can not satisfy the step up authentication requirement for high risk events like email or phone changes. Sophisticated Account take over fraudsters know this use of IP addresses and plan their strategy accordingly. I also want to point out that Paypal has a conflict of interest in being the custodian of my hijacked account, the merchant and operator of crypto trading services via XXXX XXXX, the issuer of record for PayPal digital currency and the merchant of record for Paypal digital gift cards. This is who was also the impartial investigator who said no takeover occurred. Really???? PAYPAL made money every step of the way. Why PayPal couldnt have more safe guards in place to prevent this type of account takeover is confusing.

Company response to consumer: Closed with monetary relief