Consumer complaint received 2026-04-09 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Unauthorized transactions or other transaction problem — 
Company: Paypal Holdings, Inc
State: VA

Complaint narrative:
Formal Demand for Reconsideration, Production of Investigative Records, and Further Review of Unauthorized Activity Determination Case ID : XXXX I formally dispute PayPals determination that the unauthorized transactions identified below were consistent with my PayPal transaction history and therefore not unauthorized. The transactions at issue are : XX/XX/2026 {$2500.00} USD Transaction ID XXXX XX/XX/2026 {$800.00} USD Transaction ID XXXX These transactions were not initiated, authorized, approved, or otherwise permitted by me. While I acknowledge that I have previously utilized PayPals Friends and Family payment function, such prior transactions have historically been limited to a small and consistent group of known individuals with whom I have an established payment history. The disputed transactions, by contrast, were sent to recipients wholly unknown to me and with whom I had never previously transacted. Further, one of the disputed transactions occurred at approximately XXXX XXXX., a time wholly inconsistent with my normal PayPal usage patterns and ordinary business or personal activity. Accordingly, I dispute PayPals assertion that these transactions were consistent with my transaction history unless PayPal is improperly relying upon generalized transaction type alone while disregarding material distinctions including, but not limited to : 1. The identity and prior payment history of the recipients ; 2. The unusual timing of the transactions ; 3. The amounts and pattern of the payments ; 4. The totality of circumstances surrounding the transactions. As previously reported to PayPal, these transactions occurred immediately following a documented compromise of my personal laptop resulting from a phishing/social engineering attack. Upon professional inspection, a certified computer technician confirmed that malware and unauthorized remote-access software had been installed on my device, thereby permitting a third party to remotely operate my computer and access financial accounts while appearing to transact from my normal IP address and device. Supporting documentation, technician findings, and screenshots evidencing the compromise have already been submitted to PayPal. In light of the foregoing, I respectfully assert that PayPals conclusion appears to have been reached without reasonable consideration of the totality of the evidence and may constitute an incomplete and inadequate fraud investigation. Therefore, I hereby formally request the following : 1. Reconsideration and Reopening of Investigation That PayPal immediately reopen and reconsider this matter as an account takeover / unauthorized remote-access fraud incident, rather than a standard unauthorized transaction dispute. 2. Production of Investigative Records Pursuant to PayPals prior correspondence, I formally request copies of all documents, internal notes, investigative records, analytical findings, and data relied upon in reaching the determination that these transactions were authorized or consistent with my transaction history. 3. Clarification of Investigative Basis I request written clarification specifically stating : In what manner PayPal concluded these transactions were consistent with my history ; Whether PayPal considered recipient payment history in its determination ; Whether PayPal reviewed the recipient accounts for suspicious activity, prior fraud reports, recent account creation, or other fraud indicators ; Whether PayPals determination was based solely or primarily on IP/device matching and/or general transaction classification. I respectfully maintain that the evidence overwhelmingly supports that these transactions were the result of unauthorized third-party access during a documented account takeover event. Absent further substantive justification, I dispute PayPals conclusion as unsupported by the facts and inconsistent with the evidence provided. I request prompt written response and reconsideration.

Company response to consumer: Closed with explanation