Consumer complaint received 2025-12-15 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: NY

Complaint narrative:
CFPB XXXX PayPal, XXXX ( Identity Theft, Unauthorized Transactions, and Improper Fraud Handling ) I am filing this complaint regarding identity theft and unauthorized transactions involving my PayPal account, including transactions funded by my PayPal balance and linked XXXX Bank XXXX, and PayPals refusal to properly investigate and reverse the fraudulent activity. 

On or about XXXX, unauthorized transactions were made through my PayPal account XXXX the following merchants : XXXX XXXX XXXX XXXX XXXX XXXX XXXX These transactions were funded through PayPal, XXXX charges drawn from my PayPal balance XXXX my linked XXXX Bank account or XXXX XXXX. I did not authorize, approve, or knowingly participate in any of these transactions. 

Steps I Took Upon discovering the unauthorized activity, I promptly : Reported the transactions to PayPal as unauthorized Filed fraud claims with XXXX XXXX Bank for the related charges Filed an FTC Identity Theft Report Filed a complaint with the New York XXXX Attorney General Despite these actions and supporting documentation, PayPal denied my claim, stating there was no evidence of fraudulent activity. 

PayPal has failed to : Properly consider official identity theft documentation Explain how internal login, IP address, or device data establishes authorization Acknowledge that XXXX and Chase-funded transactions are subject to unauthorized use protections Access through compromised credentials, saved payment methods, or account takeover constitutes unauthorized use, regardless of whether PayPals internal systems flagged the activity. The legal standard is consumer consent, which was absent. 

Harm Experienced Financial loss from unauthorized PayPal and Chase-funded charges Significant time spent disputing fraud with multiple institutions Emotional distress related to unresolved identity theft Risk of account limitations, collections activity, or credit harm What I Want PayPal to XXXX I am requesting that PayPal : Reopen and properly investigate all unauthorized transactions using identity theft standards Reverse all unauthorized charges, including those funded by PayPal XXXX and XXXX accounts XXXX with XXXX Bank XXXX XXXX associated fraud XXXX XXXX written disclosure of the evidence relied upon in denying my claim Confirm that my PayPal account XXXX not be penalized, restricted, or reported negatively as a result of identity theft Supporting Documents FTC Identity Theft Report New York XXXX Attorney General complaint confirmation PayPal dispute XXXX and denial notices XXXX Bank XXXX XXXX confirmations Additional Information The unauthorized transactions involve multiple unrelated digital gaming merchants. I have no prior relationship with any of them and did not receive or use any goods or services. The pattern strongly indicates account takeover and identity theft, not authorized consumer activity. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX These transactions were funded through PayPal, including charges drawn from my PayPal balance and/or my linked XXXX Bank account XXXX Chase card. I did not authorize, approve, or knowingly participate in any of these transactions. 

Upon discovering the unauthorized activity, I promptly : Reported the transactions to PayPal as unauthorized Filed fraud claims with XXXX XXXX Bank for the related charges Filed an FTC Identity Theft Report Filed a complaint with the New York XXXX Attorney General Despite these actions and supporting documentation, PayPal denied my claim, stating there was no evidence of fraudulent activity. 

Why PayPals Response Is Inadequate PayPal has failed to : Properly consider official identity theft documentation Explain how internal login, IP address, or device data establishes authorization Acknowledge that XXXX and Chase-funded transactions are subject to unauthorized use protections Reopen the dispute despite new, material evidence, including bank fraud reports Access through compromised credentials, saved payment methods, or account takeover constitutes unauthorized use, regardless of whether PayPals internal systems flagged the activity. The legal standard is consumer consent, which was absent. 

Harm Experienced Financial loss from unauthorized PayPal and Chase-funded charges Significant time spent disputing fraud with multiple institutions Emotional distress related to unresolved identity theft Risk of account limitations, collections activity, or credit harm Please see the attached Supporting Documents for FTC claims and XXXX Bank And XXXX Attorney General and XXXX I am submitting documentation identifying the unauthorized transactions, including PayPal transaction XXXX and bank XXXX XXXX which list the following merchants : XXXX XXXX XXXX XXXX XXXX XXXX XXXX FTC Identity Theft Report New York XXXX Attorney General complaint confirmation PayPal dispute XXXX and denial notices XXXX Bank XXXX XXXX confirmations The unauthorized transactions involve multiple unrelated digital gaming merchants. I have no prior relationship with any of them and did not receive or use any goods or services. The pattern strongly indicates account takeover and identity theft, not authorized consumer activity.

Company response to consumer: Closed with explanation