Money transfer, virtual currency, or money service -- Fraud or scam -- Complaint #8898587
Complaint Overview
Complaint ID: 8898587
Company: Paypal Holdings, INC
Product: Money transfer, virtual currency, or money service
Sub-Product: Mobile or digital wallet
Issue: Fraud or scam
State: Massachusetts
ZIP Code: 01821
Date Received: 2024-04-30T12:00:00-05:00
Date Sent to Company: 2024-04-30T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Consumer Narrative
On XX/XX/XXXX, a camera and two lenses that I had listed on XXXX XXXX was sold through venmo to a XXXX user that I had chatted with on the website, and then the phone. I had documented proof that this person engaged in conversation with me with the intent to purchase my camera, and then arranged for his partner to come pick the camera up after he had sent me {$4500.00} through venmo to my personal venmo account. Within a couple of days of this deal, I found that the charges had been disputed and my venmo account was negative {$4500.00}. I showed evidence to venmo that this transaction was legitimate and they dismissed me as saying I was not protected and that I owe them the balance. It seems as though this person used a stolen credit card, and I am being hit with the responsibility that I feel should lie on these financial institutions who provide this service in such a manner that permits a widespread industry of scam with little to no security for those who use it. They are a massive Corporation and I am a single citizen attempting to use the service that they offer. The solution is not to tell users to be careful who they sell to. Because I did my diligence. I was not aware that venmo permitted unrestricted use where a person 's identity was not actually tied to an account and that they are free to just throw thousands of dollars on credit only to dispute it and change their account name entirely and somehow get away with it. Where is the security? How is a person allowed to use a credit card with a name not matched to their account? And furthermore, how is their account permitted to be used when not linked to a bank account of that same identity? Why is there little to no restrictions on financial transactions in place if all venmo is going to do is tell users too bad. All that accomplishes is venmo still gets their money, the scammer keeps his, and innocent people caught in the middle are left with severe debt that they do not owe. I have documents showing timestamps, chat logs, phone call logs, and proof that this person willingly sent me this money only to then dispute it and change their name on venmo. I've already sent all of this over to venmo and they said that it essentially wasn't relevant because I was not protected.
Frequently Asked Questions
What is Complaint #8898587 about?
Complaint #8898587 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 2024-04-30T12:00:00-05:00.
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.