Consumer complaint received 2025-03-07 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: FL

Complaint narrative:
On XX/XX/year>, at XXXXXXXX XXXX, my PayPal account was hacked, resulting in XXXX unauthorized transactions totaling nearly {$13000.00}. My account had two-factor authentication enabled, yet I never received a security text message or any notification from PayPal. The only alert I received came from XXXX XXXX, not PayPal, demonstrating a clear failure in their fraud detection and security protocols. 
Upon discovering the fraud, I immediately contacted PayPal to report the unauthorized transactions. Despite assurances from multiple representatives that the dispute would be resolved in my favor, PayPal inexplicably allowed some of the fraudulent transactions to proceed. At PayPals direction, I also contacted my bank and XXXX XXXX to block the transactions. Yet, my PayPal account now reflects a negative balance that is allegedly being sent to collections, despite these transactions being the result of a clear security breach on PayPals end. My XXXX XXXX is impeccable, and if PayPal allows this fraudulent charge to go to collections, it will unjustly damage my financial standing due to no fault of my own, solely because of PayPals failure to protect my account and prevent unauthorized transactions. 
Beyond that, I actually called the phone number associated with XXXX of the charges. I found the mans full name as well. I called him and recorded the call, which I sent to PayPal. The man clearly states he was told to send the money out immediately and gave me the name of another woman who he claimed was in charge of the fraud. He admits he does not know me and the money came to him as part of a scheme. PayPal did absolutely no investigation and I was forced to take this on myself. When I did however, I found clear fraud and sent this evidence to PayPal. 
This is unacceptable. PayPal failed in its duty to protect my account, detect fraudulent activity, and enforce its own security measures. Their failure to block unauthorized transactionsdespite my immediate disputehas resulted in financial and reputational harm to me. Additionally, PayPals compliance team actually flagged some of the transactions, as I was told by representative XXXX at XXXXXXXX XXXX XXXX on XX/XX/year>, but inexplicably allowed the others. Another representative told me the transactions clearly dont match my pattern of behavior on PayPal XXXX but I would be forced to pay anyway. This is clear evidence that PayPal did not do enough to protect my account. XXXX also told me the collections language on my account is designed to sound scary. This is extortion. It is clearly a fraud and yet PayPal is coming after me for money. 
By the time this is received, I may have chosen to pay off the negative balance of {$4100.00}. I want to be clear : this is in no way a statement from me that the charges were authorized. Instead, this is a stop-gap measure to protect my nearly perfect, over XXXX XXXX XXXX as PayPal is XXXX me with threatening to send a bill to collections. I have never had XXXX single bill sent to collections in my life, let alone even a late payment. 

PayPals actions unjustly harmed my financial standing. I have never had a single bill go to collections in my life, yet PayPal coerced me into paying for fraudulent charges under threat of damaging my credit. 

PayPal failed to uphold its own security protocols. If I had XXXX enabled and received no text, then PayPals system failed, and I should not be held liable. 

PayPal failed to properly investigate the fraud, despite clear evidence proving I was a victim of a fraud. 

PayPal engaged in unfair and deceptive practices by allowing fraudulent transactions, failing to investigate, and then attempting to collect funds from me through intimidation tactics.

Company response to consumer: Closed with explanation