PayPal let my account be hacked, allowed thousands of dollars to be stolen, and then added insult to injury by denying my fraud claim after I was promised a refund. San Jose CA

On March 7, 2025, my PayPal account was hacked. I had no idea what was going on at first, just that money was vanishing from my account in multiple transactions that I did not authorize. I’ve been a PayPal customer for almost 20 years and never expected something like this. I immediately reported the fraud, expecting PayPal to do what any decent company would do, investigate and protect its customers, like every other bank I've dealt with in the past did.

At first, I actually felt a little relieved. I spoke to two different PayPal representatives who told me the transactions looked suspicious and that I would be reimbursed. I have recordings of those calls. They told me everything pointed to unauthorized access and assured me the funds would be returned.  In fact, the funds would be returned fairly quickly. That gave me hope.

But then came the second wave of stress, and honestly, it was worse than the first. PayPal denied the claim. Then they denied the appeal. No one called me. No one reached out to clarify anything.  It was all automated BS.  They have AI deny you. Their reason? They said the activity was "consistent" with my history because the IP address used was the same. That is not just outdated logic, it’s irresponsible. In 2025, hackers can spoof IP addresses, hijack sessions, or use malware to mimic normal login behavior. It’s like saying “a burglar used the same front door, so it must have been you.”  It's also nonsense in that in my 20 years with PayPal, I never once had so much money going out in such a short period of time; and I never bought crypto, but the scammers did. 

Even worse, PayPal brushed it off by saying it was a “Friends & Family” transfer, a type of transaction that offers less protection, which I did not authorize and wasn’t even online to send. Then they had the nerve to tell me to “contact the recipient.” That’s like getting robbed and being told to go ask the thief for your stuff back. It’s insulting and completely unacceptable.

What started as a financial violation turned into an emotional one. First, I’m robbed. Then, the company that was supposed to keep my money safe turns its back on me. What's worse is that they have insurance for this type of situation, but they are so greedy that they don't want to use it. It’s exhausting. I’ve spent hours of my time talking to PayPal reps, writing emails, reviewing documents, and filing complaints with every regulatory body I can find. I even hired an attorney. This isn't just about the $2,294 that was stolen. It's about the time, stress, and total disregard PayPal has shown for its customers.

I trusted PayPal with my money. I trusted their process. But instead of helping me, they doubled down on their robotic, copy-paste, scripted responses.  All designed to get rid of me without paying me back my money.  They ignored critical facts, and now expect me to just accept it. I won’t. I’ve filed complaints with the CFPB, FTC, FinCEN, SEC, FDIC, and multiple state regulators, including the Texas Attorney General. I’m also pursuing legal action - and a potential class action suit as I'm sure I'm not the only one they've done this to.

Bottom line: If you're considering trusting PayPal with your money, don't.  Use Zelle, Venmo or Cashapp.  PayPal's systems fail. Their reps will lie to you. Their "investigations" are a joke. And when you're the one who's suffering, they’ll wash their hands of you and send you an automated, generic email telling you it’s your problem now.

PayPal didn’t just let this happen, they made it worse.