Money transfer, virtual currency, or money service -- Fraud or scam -- Complaint #19118595
Complaint Overview
Complaint ID: 19118595
Company: Paypal Holdings, INC
Product: Money transfer, virtual currency, or money service
Sub-Product: Mobile or digital wallet
Issue: Fraud or scam
State: Florida
ZIP Code: 349XX
Date Received: 2026-01-29T12:00:00-05:00
Date Sent to Company: 2026-01-29T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
On XX/XX/year>, I sent a PayPal Friends & Family payment totaling {$130.00} to another PayPal user after being offered a product for sale. The seller explicitly required that payment be sent via Friends & Family and stated that the product would not be provided otherwise. The transaction was represented as a commercial sale, not a personal transfer. The seller promised delivery within a specified timeframe but never provided any tracking information, proof of shipment, or access to the product. Immediately after payment was sent, the seller blocked all communication and later abandoned or deactivated their account. No product was delivered. I later discovered evidence that the same seller engaged in similar conduct with other victims. The transaction originated on a third-party marketplace ( XXXX XXXX. The seller moved the transaction off-platform in violation of that marketplaces terms of service and required payment via PayPal Friends & Family specifically to avoid consumer protections. Screenshots show that I requested a protected, official sale and was refused. I reported the issue to PayPal through its Resolution Center and provided screenshots demonstrating that the seller required Friends & Family to bypass protections, failed to deliver the product, and blocked communication. PayPal denied the dispute and closed the case solely based on the Friends & Family classification, despite clear evidence of fraud and intentional circumvention of PayPals safeguards. This complaint concerns PayPals failure to address fraud facilitated through misuse of the Friends & Family feature for commercial transactions, and its refusal to remediate a transaction that violated PayPals own terms of service.
Frequently Asked Questions
What is Complaint #19118595 about?
Complaint #19118595 was filed against Paypal Holdings, INC regarding Money transfer, virtual currency, or money service specifically about Fraud or scam. It was received by the CFPB on 2026-01-29T12:00:00-05:00.
How did Paypal Holdings, INC respond to this complaint?
The company responded with: "Closed with explanation". The response was timely.
What is the risk level of this complaint?
See the risk assessment section for details on this complaint's risk profile.
How do I file a similar complaint?
You can file a complaint with the CFPB at consumerfinance.gov/complaint. Select the appropriate product category (Money transfer, virtual currency, or money service) and describe your issue in detail.
Can I see other complaints against Paypal Holdings, INC?
Yes, visit the Paypal Holdings, INC company profile at readthecomplaint.com/company/paypal-holdings-inc to see all complaints, risk scores, and analysis.
Disclaimer
This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.