Consumer complaint received 2026-04-06 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Problem using a debit or ATM card
Company: Paypal Holdings, Inc
State: MD

Complaint narrative:
To Whom It May Concern, I am submitting this formal dispute and demand for reinvestigation regarding two unauthorized transactions on my PayPal account resulting from a confirmed account compromise. On XXXX XXXX XXXX XXXX XXXX XXXX XXXX I discovered that my PayPal account had been accessed without authorization and used to initiate a transfer of * * {$370.00} * * to an unknown individual. I immediately took the following actions : * Logged into my PayPal account and reset all passwords * Secured my account in accordance with PayPals fraud guidance * Opened a dispute ( Case # XXXX XXXX XXXX XXXX XXXX XXXX * Submitted an affidavit confirming that this transaction was unauthorized I clearly stated that : * I did not authorize this transaction * I did not initiate this transaction * I have no connection to the recipient Despite this, PayPal closed the dispute stating that no fraud was found, which directly contradicts the evidence provided. Shortly thereafter, I identified a * * second unauthorized transaction * * in the amount of * * {$560.00} * * ( Case # XXXX XXXX XXXX XXXX XXXX ), also to an unknown individual. I immediately reported this as fraud and again stated that I had no involvement in or authorization of this transaction. Upon contacting PayPal by phone, I was transferred to your * * security department * *, where representatives : * Confirmed that my account had been compromised * Acknowledged that unauthorized access had occurred * Directed me to further secure my account, including password resets and multi-factor authentication Additionally, due to the severity of the breach, I worked with my cybersecurity provider ( XXXX ) to : * Rebuild and secure my computer * Remove any unauthorized access * Ensure my system was no longer compromised Despite PayPals * * verbal acknowledgment that my account was hacked and that these transactions were fraudulent * *, both disputes were closed with a finding of no fraud. This is unacceptable and inconsistent. PayPal can not acknowledge a security breach and unauthorized access on one hand, while denying fraud and holding the account holder financially responsible on the other. This represents a failure in both your fraud investigation process and your platform security controls. Both transactions are * * 100 % unauthorized and fraudulent * *. Accordingly, I demand the following : 1. Immediate reopening and reinvestigation of both disputes * Case # XXXX ( {$370.00} ) * Case # XXXX ( {$560.00} ) 2. Immediate reversal and refund of both unauthorized transactions 3. Written confirmation that these transactions are formally classified as fraud 4. A detailed explanation of how PayPal concluded no fraud despite confirmed account compromise 5. A review and correction of your security and dispute-handling procedures to prevent recurrence Under applicable consumer protection standards governing unauthorized electronic fund transfers, account holders are not liable for transactions they did not authorize when timely reported. I met all requirements by reporting these transactions immediately and taking all recommended security measures. If this matter is not resolved promptly, I will escalate this complaint through the * * Consumer Financial Protection Bureau ( CFPB ) * * and any other appropriate regulatory or legal channels. Please provide a written response within * * 10 business days * *. Sincerely, XXXX XXXX Email : [ XXXX ] ( mailto : XXXX ) Phone : XXXX

Company response to consumer: Closed with explanation