Consumer complaint received 2026-03-26 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: IA

Complaint narrative:
This complaint involves unauthorized transactions resulting from account takeover and includes new, material evidence not addressed in my prior complaint ( Closed Complaint No. XXXX ). PayPal has acknowledged that the transactions were funded using a bank account that was closed ( ACH return code XXXX ), yet still processed the transfers and is holding me liable. In addition, XXXX has confirmed that a fraudulent account was created in my name and that these transactions were deposited into that account and flagged as suspicious. Despite clear third-party confirmation of fraud, PayPal continues XXXX rely solely on internal authentication signals ( SMS verification and login activity ) and has not provided any functional mechanism to appeal or submit new evidence after closing the case. I am requesting CFPB review of XXXX handling of this matter, including its failure to properly classify unauthorized account access and its lack of a viable resolution path. I am submitting a new complaint regarding unauthorized transactions and account takeover involving my PayPal account. This complaint includes significant new evidence that was not addressed in my prior CFPB complaint ( Closed Complaint No. XXXX ). On XX/XX/year>, my PayPal account was compromised as part of a broader account takeover incident affecting multiple platforms, including PayPal, XXXX, and XXXX. During this event, XXXX unauthorized transactions of {$4900.00} each were initiated from my PayPal account to a XXXX account that I did not create or authorize. PayPal has denied my claim and continues to hold me responsible for a negative balance of approximately {$10000.00}. XXXX position is that I initiated a billing agreement and authorized the transactions based on SMS verification and login activity. This conclusion is incorrect and does not reflect the full facts. New and critical evidence : Fraudulent recipient account confirmed XXXX XXXX has confirmed that a fraudulent account was created in my name using a different ( XXXX-specific ) email address. The unauthorized PayPal transactions were deposited into that account. XXXX identified the activity as suspicious, blocked the account, and confirmed it as fraudulent. Closed bank account used PayPal acknowledges that the linked bank account used to fund these transactions was closed ( ACH return code XXXX ). The account had been closed for years prior to these transactions. Despite this, PayPal processed instant transfers and extended funds to a fraudulent account. Independent confirmation of fraud The individual associated with related transactions ( XXXX XXXX ) has initiated chargebacks through her financial institution, confirming that those transactions were also unauthorized. Multi-platform compromise Unauthorized activity occurred across PayPal, XXXX, and XXXX on the same day, consistent with account takeover. Circular and ineffective resolution process XXXX has advised me to initiate a chargeback through PayPal in order to recover the funds. However, PayPal has closed the relevant cases and provides no mechanism to submit additional evidence or reopen them. The only available option within PayPal is to request a refund, which directs me back to XXXX. As a result, PayPal and XXXX are effectively directing me back and forth without any path to resolution, despite confirmed fraudulent activity. Lack of functional appeal process within PayPal XXXX own guidance states that closed cases can be appealed through the Resolution Center by selecting Appeal Outcome. However, when I navigate to the closed cases in my account, there is no option to appeal or submit additional information. This creates a situation where PayPal indicates that an appeal process exists, but in practice, no such mechanism is available. As a result, I have been unable to submit newly discovered evidenceincluding third-party confirmation of fraud from XXXX XXXX system. Lack of access to meaningful manual review Despite multiple attempts to provide additional evidence, I have not been able to obtain a substantive manual review of this case. My interactions have primarily consisted of automated or scripted responses, and I have not been provided with a meaningful opportunity to present additional evidence for review. XXXX response relies solely on internal indicators such as SMS verification and consistent login activity, while disregarding clear third-party evidence of fraud and identity misuse. This is not a buyer/seller dispute. I did not create a XXXX account, did not authorize any billing agreement, and did not authorize these transactions. I am also doing my best to present this objectively, but I would note that I have communicated with and received resolution from XXXX, XXXX, my bank, XXXX XXXX, and XXXX regarding related unauthorized activity, and all of them handled the situation quicklygenerally within a single interaction. In contrast, this PayPal case has now been ongoing for approximately 30 days, requiring near-daily effort on my part to try to get it resolved. I have also filed a fraud report with the Federal Trade Commission ( FTC ), Reference Number : XXXX. I am requesting that PayPal : Reclassify this case as unauthorized account access / account takeover Reverse all related charges and fees Remove the negative balance from my account I respectfully request that the CFPB review XXXX handling of this matter, including its reliance on limited authentication signals while disregarding clear evidence of identity theft, as well as the lack of any functional appeal or escalation path despite confirmed fraudulent activity. XXXX XXXX

Company response to consumer: Closed with monetary relief