Consumer complaint received 2025-12-08 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: SC

Complaint narrative:
In XXXX, my PayPal account was compromised and used to make a series of unauthorized charges, including a {$610.00} transaction that PayPal is still trying to hold me responsible for. 

The hijacking of my account was flagrant and obvious. Someone gained access, changed email and physical addresses on my PayPal account, and immediately began attempting to siphon funds. I did not make or authorize these transactions, and I did not give anyone else permission to use my account. 

As soon as I became aware of the activity, I notified PayPal that my account had been hacked and that these charges were unauthorized. In a written communication on XX/XX/XXXX, I told PayPal very clearly : I did not make these transactions. 
I did not authorize them. 
Someone fraudulently charged to my account. 
Its plain to see someone added different email addresses and physical addresses to my account in order to commit fraud. 
Do not process ANY more payments. No debits to my bank or credit card. Please cease. 

Despite this explicit notice and request that no further payments be processed, PayPal continued processing the disputed activity. XXXX of the key transactions is a {$610.00} instant transfer payment to XXXX on XX/XX/XXXX, which my bank ( XXXX XXXX XXXXXXXX XXXX declined when PayPal attempted to pull funds from my account. 

I spoke with multiple PayPal representatives by phone at the time and was repeatedly assured that I would not be held liable for charges I did not authorize. I relied on these assurances and believed PayPal would protect me from the fraudulent activity on my account. 

Several charges in this same sequence were eventually refunded as fraudulent. However, PayPal has taken an inconsistent and unexplained position by selectively deciding that XXXX charge for {$610.00} is somehow authorized, even though I reported all of the related transactions as unauthorized at the same time and they clearly form a single pattern of account compromise and fraud. 

PayPal has told me that this {$610.00} payment was processed under a billing agreement with XXXX XXXX XXXX, allegedly created on XX/XX/XXXX. They claim that because this billing agreement existed and some prior payments occurred, the {$610.00} transaction can not be considered unauthorized and they will not reverse it. 

Their own customer service agent XXXX wrote to me on XX/XX/XXXX, stating that they understood I did not authorize this XXXX, that they would cancel the agreement between my PayPal account and XXXX XXXX XXXX, and that they would file a case to help me get my money back. In that same message, the agent referred to the disputed charge as an XXXX XXXX purchase, even though : The transaction is described elsewhere as being to XXXX XXXX XXXX XXXX XXXX ; I have never purchased goods or services from XXXX ; and I do not own any XXXX products. 

This inconsistent description of the merchant calls into question the adequacy and accuracy of XXXX XXXX, if PayPal knows that this was used to purchase XXXX products or services, they know more than me. Since I did not ever purchase any XXXX products or services. 

On XX/XX/XXXX, another PayPal agent, XXXX, wrote to me and said that because a billing agreement with XXXX XXXX XXXX was set up on XX/XX/XXXX and multiple payments were made under it, the disputed {$610.00} can not be considered unauthorized, that disputes can only be appealed within 10 days, that each transaction can only be disputed once, and that the case is no longer eligible for appeal or escalation. 

PayPal is therefore refusing to : Properly acknowledge that my account was clearly hijacked ( with changed emails and physical addresses ) and that I promptly reported this ; Explain why some of the related fraudulent charges were refunded while this particular {$610.00} transaction was singled out as authorized ; Reconcile their conflicting references to XXXX XXXX XXXX and XXXX XXXX, despite my never having used XXXX products or services ; Honor multiple assurances given to me by phone and in written messages that I would not be held liable for charges I did not authorize ; or Provide detailed evidence that I knowingly set up this recurring billing agreement or expressly authorized the disputed {$610.00} payment after my account was compromised. 

I am requesting that CFPB assist in having PayPal : Reevaluate their decision and relieve me of liability for the {$610.00} transaction and any related negative balance ; Provide a clear written explanation and documentation of the evidence they rely on to claim this transaction was authorized, including how they justified treating some of the fraudulent charges as unauthorized while denying this one ; and Confirm that they will not send this disputed amount to collections or report me negatively to any credit bureau as a result of this compromised-account incident.

Company response to consumer: Closed with monetary relief