Consumer complaint received 2026-03-04 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: MD

Complaint narrative:
PayPal 's dispute resolution system enabled a buyer to commit return fraud, resulting in my loss of over {$5000.00} in merchandise. PayPal closed the case without investigating clear evidence that the buyer returned completely different items than what I shipped. TRANSACTION DETAILS : In XX/XX/XXXX, I sold XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX '' booster boxes for {$5100.00} via PayPal Goods & Services to a buyer located in XXXX. Before shipping, I photographed all 9 authentic booster boxes and sent these photos to the buyer via XXXX and included them in the PayPal invoice as documentation. I shipped the items via XXXX with tracking. The package was delivered to the buyer on XX/XX/XXXX. Please see waybill tracking of XXXX. BUYER 'S FALSE CLAIM : On XXXX XXXX XXXX, the buyer sent messages claiming the items were " not as described '' and stating they received XXXX XXXX boxes instead of the XXXX boxes I sent. When I responded within XXXX hour requesting photographic evidence of their claim, the buyer immediately blocked me on XXXX, preventing further communication.The buyer filed a dispute with PayPal claiming they received the wrong items. They claimed in their dispute that they had recorded an unboxing video for their XXXX channel. Unfortunately I don't believe the customer and seller can view each others ' evidence. FRAUDULENT RETURN : XXXX approved the buyer 's return request. The buyer returned a package using my original shipping materials. When I received the return package, I recorded video of myself opening it on my doorstep to document what was inside.The video clearly shows that the package contained XXXX XXXX XXXX booster boxes instead of the XXXX authentic XXXX booster boxes I had shipped. The buyer had swapped the high-value items I sent with lower-value substitutes and returned them in my original packaging. PAYPAL 'S FAILURE TO INVESTIGATE : I immediately uploaded my video evidence to the PayPal dispute case showing the fraudulent return contents. I also submitted my pre-shipment photographs proving what I originally sent.PayPal closed the case in the buyer 's favor with the decision : " The case was closed in the buyer 's favor as valid proof of return delivery was provided. " PayPal 's decision was based solely on tracking confirmation showing that something was delivered back to me. They never responded to my evidence showing that the WRONG items were returned. PayPal 's automated system only verified that a return occurred, not that the correct items were returned.This enabled the buyer to steal over {$5000.00} in authentic merchandise while receiving a full refund.ADDITIONAL EVIDENCE OF FRAUD : The buyer exhibited multiple red flags : New XXXX account ( where we initially connected ) created one month prior with zero transaction history, yet claimed to be an established XXXX content creator Communication pattern changed dramatically after payment was received Blocked me when I requested evidence while simultaneously claiming in their PayPal dispute that I " never responded '' I have filed a report with the US Postal Inspection Service for mail fraud.PayPal 's Buyer Protection program was weaponized against me as a seller. Their refusal to investigate documented return fraud and their reliance on automated decision-making without human review has caused me significant financial harm exceeding {$5000.00}. I am happy to share the video of opening the package on my front doorstep along with photo evidence of me preparing the package with the CORRECT product, and images of our conversation on both XXXX and XXXX. The files are too large for the file upload here. Please contact me and I will be able to email a zip archive with everything I have.

Company response to consumer: Closed with explanation