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

Complaint narrative:
PayPal is holding me liable for unauthorized third-party activity and that their investigation failed to recognize the hacker 's access. PayPal 's investigation was " inadequate '' because they ignored the fact that the account was accessed after security measures were updated. I can't work due to mental health some physcial health issues cause issues long term for me. So I sing live on XXXX paypal was and still is the only option it shows me that I can cash out my XXXX dollars I make every week to pay for hygiene products and medications and Dr visits and things like that which I can't do because paypal refunded me XXXX dollars for a purchase I made and authorized but sided with hacker and left me with a negative XXXX dollar balance they put my XXXX dollars on that negative balance. I am being held liable for a negative balance caused by identity theft. My account was compromised, and the hacker added fraudulent XXXX cards and changed my home address. Despite this evidence, PayPal 's automated investigation ruled against me. I have been a loyal user since XXXX with XXXX issues. My account was compromised via a phone number breach, at which point a hacker changed my home address and added XXXX cards that do not belong to me. Paypal initial investigation failed to recognize these clear signs of identity theft. I have screenshot for proof. As i had stated earlier, they are essentially stealing myown money to pay for a hacker 's debt by applying my legitimate refunds to a fraudulent balance. Which is crazy I told paypal customer service multiple phone calls even spoke with tech support told them what purchases was me before the negative balance they refunded me for my authorized purchase I made told them I made it. They told me investigation was ruled against me and there's a charge back for a buyer which isn't named either. My a count has never been in a negative e balance. Ever had any issues until XX/XX/XXXX and it took them a month to come to a conclusion. They want me to pay on a negative balance I did NOT cause or make now also. I live with my parent 's can not work for health reasons as i mentioned earlier in this message. I have no funds technically to do any of this. I'm lucky if I make XXXX dollars off singing live on XXXX every week. I use that for medication groceries dr visits hygiene products things like that. I essentially do not make anything still to pay them back. Furthermore, paypal tried to get me too reach out to guy sending money most and see if we could resolve the issue in our own but email wouldn't go through no matter how many times I pressed send and as you'll seen when in laypals app I tried to message him it says basically user unavailable. That's proof too I feel like. Also about 2 or 3 weeks ago you will see my balance screenshot from XXXX of XXXX dollars and XXXX cents. It wasn't negative then. I uploaded that as proof I've never been in negative until people hacked my account sent money to different cards and people through my account. Starting XX/XX/XXXX.

Company response to consumer: Closed with monetary relief