Consumer complaint received 2026-05-06 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: NY

Complaint narrative:
I am the legitimate owner and operator of the XXXX merchant account at PayPal ( Merchant ID XXXX ). PayPal now claims this merchant account was created on XX/XX/XXXX and has repeatedly suggested it is not mine. This claim is contradicted by PayPals own reporting. PayPals Customers Report for XXXX shows a transaction date range beginning XX/XX/XXXX, a full XXXX years and XXXX months before the claimed creation date, and I have older emails on my device confirming this earlier existence. XXXX In or around XX/XX/XXXX, XXXX massive outgoing payouts were processed through Merchant ID XXXX via XXXX, transferring approximately XXXX USD ( in XXXX pesos ) to a XXXX financial institution. These transfers are documented in the XXXX XXXX XXXX Report ( XXXX ledger records with XXXX XXXX status, reference XXXX ). When my case was escalated, XXXX told me that Merchant ID XXXX does not exist in their system, even though XXXX USD had already been routed through it. PayPal has never reconciled this contradiction. XXXX XXXX At the same time, my identity and phone number were being abused ( including AIpowered XXXX XXXX calls requesting onetime passcodes ) and my ability to access PayPal was being degraded. While I was on a live call with PayPal on XX/XX/XXXX, my existing CFPB complaint ( XXXX ) was closed midcall, and the closure notice was sent to an email address ( XXXX ) that I had not authorized on the account. On XX/XX/XXXX, PayPal then verified my identity via Social Security number, formally accepting my SSN and identity details. On XX/XX/XXXX, a PayPal representative called me, stated that the name on the account was no longer yours, and hung up. This sequence strongly suggests suppression of my federal complaint and manipulation of the account profile while fraud was ongoing. The most serious issue is PayPals denial of the XXXX account and its link to my XXXX, despite crossplatform evidence. My Coinbase Suspicious Transactions Report shows a linked PayPal Billing ID XXXX labeled MojoMusicFilter, and my PayPal XXXX app screenshots show multiple XXXX billing IDs ( including XXXX and XXXX ) established within the XXXX merchant environment. My XXXX account was then taken over between XX/XX/XXXX and XX/XX/XXXX and drained from about XXXX USD down to XXXX USD via foreign IP logins, memecoin churn, and withdrawals to multiple external wallets. In other words, PayPal allowed my stolen identity and merchant profile to be used as a conduit : XXXX ) Hyperwallet processed over XXXX USD in payouts through a merchant ID that XXXX now says does not exist ; XXXX ) the same merchant and billing IDs link directly into my XXXX account ; and XXXX ) while this fraud was actively unfolding, PayPal XXXX my access, closed my CFPB complaint midcall, verified my Social Security XXXX, and then claimed the account name was different and hung up, all while later insisting the relevant merchant account and Billing IDs were not mine or did not exist. XXXX internal records now independently confirm the existence and use of the very same Billing ID and XXXX entity that PayPal is disavowing. XXXX XXXX PayPals XXXX includes : > XXXX ) Providing false or contradictory information about the creation date and ownership of my XXXX merchant account while their own systems show earlier activity. XXXX XXXX ) Allowing more than XXXX USD in XXXX XXXX through a merchant ID XXXX XXXX denies, without adequate investigation or remediation. > XXXX ) Permitting my stolen email ( XXXX ) to be used as an active PayPal payment identity in XXXX while my own access was restricted and I was being told the account was permanently limited. > XXXX ) Closing a CFPB complaint during a live call, routing the closure notice to an unauthorized email, and then, after taking my Social Security information, claiming the name on the account was no longer mine and terminating the call. > XXXX ) Failing to act on obvious red flags that their systems were being used as the hub of a multiplatform identitytheft and cryptodrain scheme that continued into my XXXX account. [ XXXX ] XXXX XXXX I am requesting that the CFPB require PayPal to : XXXX ( a ) Acknowledge in writing the existence and ownership of the XXXX merchant account and all associated Billing IDs ( including XXXX, XXXX, XXXX ). XXXX ( XXXX ) Explain the XXXX USD XXXX XXXX through a merchant ID Hyperwallet now denies and reconcile this with PayPals internal records. XXXX ( XXXX ) Explain why my CFPB complaint was closed midcall, why notices were routed to an unauthorized email address, and why I was told the name on the account had changed immediately after they verified my Social Security information. > ( d ) XXXX a full forensic review of all transactions and logins tied to my identity from XX/XX/XXXXXXXX XXXX XXXX XXXXd reimburse the unauthorized transfers and losses resulting from PayPals failure to protect my account and identity.

Company response to consumer: Closed with explanation