Consumer complaint received 2024-06-13 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:
This serves to inform CFPB of a damaging Third Party Fraud and Account Takeover of a PayPal account that has been operating since 2004 with no issue. This account was used to support my independent business in XXXX XXXX. Over the course of the past XXXX weeks, my credibility and integrity as a business owner with my clients has been virtually destroyed. I have suffered extreme financial andemotional loss, as well as time which is the ultimate currency. I bill out at {$150.00} an hour for my time and have missed countless calls and opportunities due to attending to this nonsensical matter. PayPal had no interest in this account takeover or in the harvesting of my information, which resulted in identity theft and third-party fraud. My personal and financial information ( banking, social media platforms, emails, client emails, and anything linked to my name ) has been at risk, and as a single mother with XXXX teenagers and full financial responsibility, this is beyond frightening and unacceptable. This case regards intentional theft, fraud, hacking, phishing, and identity theft. PayPal, by choosing to support this third-party hacking operation, and allowing them free access to my account by restricting my access, intentionally participated in a very complicated ( as reported by numerous employees ) scheme and did not protect their customer. This intentional customer neglect and delay with continued lack of concern and attention, has resulted in activities from PayPal that can not be rectified. Additionally, PayPal can not be trusted with protecting their clients, personal information, banking transfers, and their clients ' funds. It is reprehensible that hackers were given concessions and given priority treatment over the rightful owner of the account. Every phone call, email or effort made to solve this was met by instant activity by a third party that gave them information and access to my account and personal information. My phone would ding with PayPal activity within my account and werefollowing me the moment I hung up with PayPal. 

My biggest question in this entire travesty is where is the department within PayPal that actually supports the client and doesn't just answer the phone with trite trivialities and feigned interest. I was passed off and repeatedly told my situation would be handled and was very serious. Evidently that is not the case as yes, it is very serious to me, but not to PayPal as it has not been handled. How was a third party able to answer my security questions, gain access to my account to launder money, and PayPal not take this as a dire issue within the company. How many others has this happened to? 
On XX/XX/XXXX, I received multiple emails from PayPal that would continue for weeks. These emails informed me that new information and security questions had been added to my account. The primary language switched from English to XXXX. I immediately reached out to PayPal because I had not added any new information to my account. I was assured that my account was just fine, and nothing had changed, I was receiving my Quarter XXXX royalties as expected and everything was as it should be within the account. I was told that " this must be a mistake ''. The accountwould have further safeguards and be locked for anyone but me. I changed my security questions, and all passwords, but it was too late to intervene at this point. Account activity took place multiple times daily and multiple criminal activities took place. 

By XX/XX/XXXX, a new email was added, numerous credit cards, and false documents that were clearly Identity Fraud. I could not access my account. I reached out to PayPal immediately because this is clearly illegal fraudulent activity. The account was hijacked completely by a third party who submitted driver 's license, social security card, and other documentation with my name, someone else 's picture and addresses. In the beginning, I spoke with XXXX different individuals within XXXX days. XXXX and XXXX were the most helpful on the front end and assured me the case was opened and escalated. It was being handled, my funds ( which now equalled $ XXXX ) would be protected and released shortly. XXXX committed to reach out to me with information within XXXX hours. There was no follow-up and there is no way to reach thesame person inthe PayPal hierarchy as I was told by PayPal that isn't how theydo business and a newcase is opened every acall is made to the customer service number. Where do these cases go and who attends to them? Where is the customer service to protect longtime clients? Who are cases being escalated to for resolution? Why is there any follow through? 
By this point, this should been resolved! However, more serious and damaging fraudulent activity occurred. XXXX bank accounts ( including XXXX  XXXX XXXX, which is my banking institution ) were linked to it, money began being deposited and debited to various banking institutions ( not belonging to me ) and even for cryptocurrency. These transactions were made by the hackers that took over the account. I had NO ACCESS to my own long-standing PayPal account XXXX They committed fraudulent activity, phishing schemes, and account harvesting. This activity was devastating to my small business. Every subscription and business related expense was cancelled, and this cost me further expense that was not my fault. This account was linked to my XXXX acct, XXXX, XXXX and other business entities required for my services. Every payment was rejected, and fees accumulated. In fact, XXXX would not renew because PayPal had neglected to honor my subscriptions that hadbeenin place foryears. Furthermore, my business that supports my family as a single mother has been destroyed as a result of fraud, cheating and unethical behavior. 
I continued to reach out to PayPal to rectify the situation and restore the account safely, to no avail. I continued to be locked out and third-party hackers continued to use this account. From XX/XX/XXXX until XX/XX/XXXX, I made XXXX phone calls to PayPal regarding this financial devastation. Every person I spoke to promised a callback and that supervisors were aware and reinstating a new account. I spoke to XXXX on XX/XX/XXXX, who spent over XXXX hours researching the case and tried her best to reassure me the funds were safe, and all would be well as PayPal would stand behind me. I spoke with XXXX XXXX more time and then never heard back. I submitted all the appropriate documentation to prove my identity during thephone call with XXXX. She said she would be working with the fraud department and the utmost attention would be given to this, as the activity was clearly illegal and fraudulent. Furthermore, XXXX promised thefunds that been used that very day of {$500.00} and another attempted {$1000.00} transaction would be put back in my account as it was clearly illegal activity. PayPal did not honor this commitment. The third-party hackers were continuing to call as well to claim ownership of the account and were using their false identification ( which was honored by PayPal ) to maintain ownership, move funds, and commit more cheating and fraud. I had to shut down every personal email and many business accounts due to this activity, and to attempt to protect my identity which was clearly confiscated in an identity theft operation with PayPal. Much to my chagrin, PayPal chose to support the third party and didn't protect me in any form or fashion. They seemed to think this was no big deal and I should be patient until everything was " sorted out '' which is clearly not going to happen. To my detriment, a third party was allowed to take over the account, the funds, and my identity. They still have not been stopped. 
After speaking with XXXX, I spoke with other " supervisors '' including a man named XXXX and other fraud department employees. XXXX called XXXX while we were on the phone, said I would hear from them shortly as they were working on it right that very moment. I never heard back. From there, multiple cases were supposedly opened, but none were ever of concern to PayPal. In fact, as of yesterday, XX/XX/XXXX, the same account that was supposedly protected, locked, and subsequently shut down ( only to the owner, me, apparently ) was used to buy bitcoin currency in the amount of nearly {$500.00}. 
I reached out several more times and was repeatedly promised a callback from a supervisor that was handling this case. Wednesday, XX/XX/XXXX, I received a call from XXXX who claimed to be a XXXX. Over the course of XXXX ( XXXX ) hour and XXXX minutes, he reassured me he was going to do everything he could to help me. He promised the funds would be released into another PayPal account immediately. However, before that would happen, I had to go through my account line by line with him. Interestingly enough, they " couldn't locate '' any activity for me, but could verify that all activity within the account was fraudulent, and funds were fraudulent as well. As a consolation prize, {$300.00} of the amount that was originally in the account would be placed in a protected PayPal account that I owned and would take place immediately. Several discrepancies and untruths occurred in this conversation. First and foremost, all activity was not located, and no interest was shown in the fact that my business and my family had suffered due to gross negligence and allowing a third party to access my account. My records were replaced with activity from fraudulent hackers. XXXX claimed this was " the worst case they had ever seen '' at PayPal and was very upsetting, and he had not seen acase like this one in a longtime. Second, there was never a deposit of any money made into a PayPal account on my behalf. That second account given to XXXX to transfer the funds to, is still resting at XXXX. Clearly, XXXX did not honor his word that he would be solving the problem. Hackers remain in my account and are using funds. 

XXXX made it clear the hackers had been stopped, but that isn't the case. In my conversation with him, he questioned me repeatedly and I felt as if I were the one under scrutiny. 

To provide a concise explanation of the situation, PayPal has had no interest in me as a long-standing customer. They have allowed my identity to be stolen, funds to be misappropriated, third party hacking, hijacking and harvesting, phishing, fraud, deceit and ultimate destruction. It has clearly shown me that I could never run a business through PayPal. There is no fraud protection or customer service. My business has suffered, profit has been lost, credibility damaged, and the result of this account being locked to me as the rightful owner, and free for hackers to use, has resulted in multiple fees and accruals. There is truly no price tagthat could be put on this unethical and negligent activity, but there should be some reparations made and interest shown. This case is not just about the PayPal account or themoney therein, but is most importantly, about my identity being stolen, lack of protection, and no interest. from PayPal. My money should be made available to me, as well as the fees and restoration amounts for business accounts that were canceled. Time and integrity are priceless, and the loss is grave. There needs to be an agreement between myself and PayPal to rectifythis situation and make reparations for allowing this to continue to take place and not immediately taking this very seriously. International companies such as PayPal have the ability to make fraudulent activity cease within moments.

Company response to consumer: Closed with monetary relief