Consumer complaint received 2025-01-27 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Paypal Holdings, Inc
State: MN

Complaint narrative:
I have had a PayPal account since XXXX. My PayPal Account number is XXXX. My credit card with XXXX, checking account at XXXX XXXX XXXX XXXXXXXX XXXX were connected to my PayPal account at the time it was compromised. My debit card at XXXX XXXX XXXX XXXXXXXX XXXX  was not connected to this PayPal account until it was compromised and I was led to believe that it need to be connected to make the account secure. 
On XX/XX/XXXXXXXX XXXX  I noticed a charges on my PayPal totaling {$140.00} and dated XX/XX/XXXXXXXX and I had not used my PayPal account since XX/XX/XXXXXXXX XXXX XXXX I logged into PayPal and called the customer service number I found on the account. I talked to XXXX XXXX, and explained to him I had these transactions on my account and did not make them, He said he could help me and would take care of this for me. He told me, I would have to download a client assist app on my phone to help to fix the security problem with PayPal and these unauthorized transactions. I downloaded the app., to get this fixed. I assumed this fixed the problem. 
On XX/XX/XXXX, I noticed money was being taken from my checking account, transactions were coming out from PayPal. 
When I logged into my PayPal account and I found the following charges/activity on my account : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX A PayPal Debit XXXX was opened and was ready to use XXXX PayPal Debit XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX added the PayPal Balance XX/XX/XXXX $ XXXX XXXX XXXXXX/XX/XXXX $ XXXX XXXX XXXX XXXX added the PayPal Balance XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX {$660.00} added the PayPal Balance XX/XX/XXXX {$100.00} XXXX XX/XX/XXXX {$100.00} XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$490.00} added the PayPal Balance XX/XX/XXXXXXXX XXXX XXXX XXXX XXXXXX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$390.00} added the PayPal Balance XX/XX/XXXX {$100.00} XXXX XXXX XXXX XXXX XXXX XXXX XXXX After finding these transactions on PayPal on XX/XX/XXXX, I found a different customer service number by searching online for a customer service number and called and told them of these transactions and that I did not authorize them. They opened 2 cases for to dispute the transactions, Case ID XXXX and Case ID XXXX. I also changed my PayPal password, removed all my cards and bank account information and they stopped anymore charges from coming through the account ; I also contacted my credit card and bank. 
XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX based on PayPal payment history and PayPal history. 
I appealed this Appealed this decision XXXX PayPal denied Case ID XXXX based on We have reviewed this transaction ( s ) and are denying your case ( s ). The decision was made because this transaction was not unauthorized. If you would like a copy of the documentation we used in the investigation of you case, send a letter including this case ID to the following address :. 
XXXX Called PayPal and opened a new case regarding the unauthorized charges Case # XXXX. 
XXXX PayPal denied Case ID XXXX based on PayPal payment history and PayPal history. 
XX/XX/XXXX, called PayPal and with my Bank, we spoke with XXXX. We asked PayPal to open a cases again on the unauthorized transactions, because they were not consistent with my history, as I do not use the account often and I have never bought crypto currency ( I dont even know what it is ), so they reopened case, Case ID XXXX. We did also ask to reference the CFPBs Regulation E FAQs, specifically FAQs 5-8 Unauthorized, and XXXX said they would note it, but was not aware of these Regulation FAQs Reference. 
XX/XX/XXXX PayPal appeal denied Case ID XXXX based on PayPal payment history and PayPal history XXXX 
XX/XX/XXXX, my bank and I called PayPal, requesting to open or reopen a case to have a person review these transactions and again make sure they are looking at the CFPBs Regulations E FAQs. We spoke with XXXX at PayPal and he stated it could no longer be reviewed since it had been reviewed in 2 cases and appealed already. Again, we requested they look at the CFPB Reg E FAQs and he did not know of these. We requested we resolve this situation with PayPal directly or we would be filing a complaint with the CFPB, and he stated we could file a case with the FBI and he didnt know about the CFPB. He stated Paypal would not change the decision. 
Here are important points I would like to make : I have NEVER bought XXXX XXXXXXXX nor have I had any transactions prior to these unauthorized transactions to XXXX XXXX XXXX So they are not consistent with my PayPal history. 
The PayPal payment history appears consistent because the cards were connected to the account and whoever fraudulently used my PayPal account used my cards connected to my PayPal account ( my debit card on my bank account and credit card ). So it may appear consistent- because they were using my account, but it was fraudulently used. ( Money was taken from my Bank account, credit card and debit card and added to my PayPal account and I have disputed these transactions with my Bank and credit card ). 
These transactions and situation fall under unauthorized, in the CFPBs Reg E FAQs. PayPal does not appear to be following the requirements set forth in these FAQs by the CFPB. Specifically, question number 5 and 6 : o Question 5. A third party fraudulently induces a consumer into sharing account access information that is used to initiate an EFT from the consumers account. Does the transfer meet Regulation Es definition of an unauthorized EFT? Yes. As discussed in Electronic Fund Transfers Error Resolution : Unauthorized Fund Transfers Question 1, Regulation E defines an unauthorized EFT as an EFT from a consumers account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit. 12 CFR 1005.2 ( m ). Comment 1005.2 ( m ) -3 explains further that an unauthorized EFT includes a transfer initiated by a person who obtained the access device from the consumer through fraud or robbery. Similarly, when a consumer is fraudulently induced into sharing account access information with a third party, and a third party uses that information to make an EFT from the consumers account, the transfer is an unauthorized EFT under Regulation E. For example, the Bureau is aware of the following situations where a third party has fraudulently obtained a consumers account access information, and thus, are considered unauthorized EFTs under Regulation E : ( 1 ) a third-party calling the consumer and pretending to be a representative from the consumers financial institution and then tricking the consumer into providing their account login information, texted account confirmation code, debit card number, or other information that could be used to initiate an EFT out of the consumers account, and ( 2 ) a third party using phishing or other methods to gain access to a consumers computer and observe the consumer entering account login information. EFTs stemming from these situations meet the Regulation E definition of unauthorized EFTs.

o Question 6- If a third-party fraudulently induces a consumer to share account access information, are subsequent transfers initiated with the fraudulently obtained account information excluded from Regulation Es definition of unauthorized electronic fund transfer because they are initiated [ b ] y a person who was furnished the access device to the consumer 's account by the consumer? No. A consumer who is fraudulently induced into providing account information has not furnished an access device under Regulation E. As explained above in Electronic Fund Transfers Error Resolution : Unauthorized EFTs 3, 4, and 5, EFTs
initiated using account access information obtained through fraud or robbery fall within the Regulation E definition of unauthorized EFT. See Comment 1005.2 ( m ) -3.

I am wanting resolution and a refund of all of my money on these transactions as they were unauthorized. I did NOT authorize any of these transactions or have anything to do with them.

Company response to consumer: Closed with non-monetary relief