Consumer complaint received 2025-11-26 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Card was charged for something you did not purchase with the card
Company: Paypal Holdings, Inc
State: WA

Complaint narrative:
My husband and I were victims of an organized impersonation and coercion fraud scheme on XX/XX/year>. The scammers contacted us claiming to be from XXXX XXXX  fraud department. They used phone number spoofing to display XXXX actual caller ID, referenced real account information, and stated that our identities were compromised and loan applications were being fraudulently opened in my husbands name. They then escalated the call and transferred us to individuals impersonating FBI agents. 

The callers kept us on the phone for over four hours ( from XXXX on XX/XX/XXXX until well after XXXX  on XXXX XXXX ), used high-pressure tactics, and convinced us that our bank accounts and phones were compromised, they even cited my husband 's full SSN and previous addresses to help " prove '' that they had documented fraud. Under their direction, they coerced us into moving funds between our own accounts and ultimately to the scammers through PayPal. We were specifically told that these transfers were part of a federal hold process to protect our money from criminals. 

During the scam, funds were transferred from multiple credit cards ( XXXX XXXX XXXX XXXX XXXX XXXX  , and XXXX  ) into PayPal accounts belonging to me and my husband, and then immediately out to the scammers. We did not authorize these transfers knowingly or willingly. We believed we were speaking with legitimate bank fraud investigators and federal agents. 

We have already taken the following steps : Filed an IC3 report with the FBI ( IC3 submission ID : XXXX ) Filed a police report with our local police department ( Case Number : XXXX ) Reported fraud to XXXX XXXX ( both my husbands account and mine ), XXXX  ( just my account ), and XXXX ( my husbands account ), who are all actively investigating Reported fraud to PayPal, which incorrectly denied our dispute despite the coercion, impersonation, and identity-theft elements Changed all passwords, secured devices, and added fraud alerts Our dispute with XXXX XXXX XXXX XXXX XXXX and XXXX relates to funds that were coerced from our credit cards under false pretenses. These charges were not authorized by us. The scammers controlled the process, and we acted under fear and misinformation, believing we were speaking with legitimate bank fraud departments and federal agents. 

We are requesting CFPB assistance to ensure : Our banks properly classify these transactions as fraudulent and unauthorized under Regulation Z. 

We are not held financially liable for money lost during this coercion scam. 

PayPal accurately reflects the fraud determination once the credit card issuers finalize their findings. 

All financial institutions involved comply with their obligations for consumer protections, identity theft procedures, and zero-liability fraud standards. 

This event has been extremely stressful and financially devastating, and we are seeking proper protection and resolution under federal consumer law. 

Thank you for your assistance.

Company response to consumer: Closed with non-monetary relief