Consumer complaint received 2024-03-16 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Paypal Holdings, Inc
State: GA

Complaint narrative:
Subject : Urgent Request for Investigation and Full Refund of Fraudulent Transactions Linked to My PayPal and XXXX XXXX XXXX  Accounts Dear Sir/Madam, I am writing to seek the assistance of the Consumer Financial Protection Bureau ( CFPB ) in addressing a serious issue involving unauthorized transactions through my PayPal account , which subsequently affected my linked XXXX XXXX XXXX  account. Despite attempts to resolve this matter directly with both PayPal and XXXX XXXX XXXX, my disputes have been unjustly denied, leaving me without restitution for the significant financial loss I have suffered. Summary of the Incident : As a loyal PayPal user for over five years, I was alarmed to discover that my IRS tax refund had been illicitly withdrawn in multiple transactions, each exceeding {$100.00}. This fraudulent activity was not immediately apparent to PayPal 's security systems, leading to a significant breach of my financial security. Upon discovering these unauthorized transactions, I acted swiftly to contact the recipients, informing them of the situation, which resulted in the return of the funds to my PayPal account. These funds were then transferred back to my XXXX XXXX XXXX  account. Despite these efforts to mitigate the damages, both PayPal and XXXX XXXX XXXX  have denied my claims for a refund. Points of Dispute : Flawed Transaction History Analysis : My dispute with PayPal was denied under the pretense that the transactions matched my usual activity. This ignores the reality that the transactions were unauthorized, highlighting a significant oversight in PayPal 's fraud detection measures. Recurring Security Breaches : This incident is the third instance of unauthorized access to my account, underscoring a recurring vulnerability that PayPal has failed to adequately address. I informed PayPal that the transactions starting around XX/XX/XXXX were unauthorized transactions. The account that my funds were being transferred to has been sending money to their account and then when I reported it they sent the money back two times. I did not file a claim initially because I received my funds back on XX/XX/XXXX and XX/XX/XXXX from this account. I have been using PayPal for years and never experienced any issues so I did not understand what was going on but since my funds were returned I did not file a claim at the time. Then on XX/XX/XXXX, the same name started receiving money from my PayPal account again. Starting with {$50.00} transfers on XX/XX/XXXX and moving up to {$100.00} transfers and {$150.00} transfers until XX/XX/XXXX when I noticed and filled the claim. PayPal has denied my claim stating no unauthorized use and transaction history ignoring the fact that every transfer to this account has been unauthorized and my PayPal account has been hacked and accessed somehow. I have done my research and have concluded that the people running this scam understand the PayPal system so they know to create transaction history by pulling money from someone's account and sending it back a few times so the system thinks that the accounts have a relationship. After that is done they drain a person 's account and if they receive enough funds before it is reported and they get the money out of their account the scam has worked. XXXX XXXX XXXX  's Non-compliance : Despite having a zero-liability policy for unauthorized transactions, XXXX XXXX XXXX has also denied my claim, refusing to refund the fraudulently withdrawn funds. This failure to honor their policy compounds the financial injury I have experienced. Proactive Security Measures : In response to these breaches, I have severed the link between my PayPal and XXXX XXXX XXXX  accounts to prevent further unauthorized access, albeit after the fact. This decision reflects my diminished trust in both entities ' security protocols. Request for Resolution : In light of XXXX XXXX XXXX 's refusal to honor its zero-liability policy and PayPal 's inadequate response to this breach of security, I am requesting a full refund of the compromised amounts from both institutions. I urge the CFPB to initiate a thorough investigation into the fraudulent activity associated with my accounts and the subsequent handling of my disputes by PayPal and XXXX XXXX XXXX. Your immediate attention to this matter is critical, not only for the recovery of my funds but also to address potential systemic issues within these financial services that jeopardize consumer protection and trust. I am fully prepared to cooperate with your investigation and provide any additional information required. I appreciate your prompt response to this urgent matter. Around {$2100.00} was taken. Sincerely, XXXX XXXX Email : XXXX XXXX

Company response to consumer: Closed with explanation