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PayPal Venmo fraud class action lawsuit overview:
- Who: Mohammad Al-Ramahi filed a class action lawsuit against PayPal, Inc.
- Why: Al-Ramahi claims PayPal fails to reimburse customers who are defrauded on its Venmo money transfer service.
- Where: The class action lawsuit was filed in California federal court.
PayPal fails to reimburse customers who signed up for its Venmo money transfer service and became victims of fraud, a new class action lawsuit alleges.
Plaintiff Mohammad Al-Ramahi claims PayPal customers who are defrauded on Venmo are “entitled to such reimbursement by federal regulations and the marketing representations of PayPal.”
PayPal falsely markets Venmo as a “safe way for consumers to send money” and withholds the truth about the dangers of using the service from its customers, the PayPal class action alleges.
“In fact, there are huge, undisclosed security risks of using Venmo that Defendant omitted from its marketing push to get its customers to sign up for Venmo,” the PayPal class action states.
PayPal class action alleges no recourse for Venmo fraud victims
Al-Ramahi claims PayPal fails to inform its customers that, in the event they are defrauded on the platform, there is “virtually no recourse for consumers to recoup losses due to fraud.”
Further, Al-Ramahi argues that unlike “virtually every other payment method commonly used by American consumers,” there is no protection nor virtually any recourse for account holders to get back their lost funds.
“The unique, misrepresented and undisclosed architecture of the Venmo payment system means that virtually any money transferred for any reason via Venmo is gone forever,” the PayPal class action states.
Al-Ramahi claims PayPal has a secret policy to not reimburse its customers who are defrauded on Venmo for any reason, even when the loss of funds is timely reported.
Al Ramahi claims PayPal is guilty of breach of contract and breach of the covenant of good faith and fair dealing and in violation of The Electronic Funds Transfers Act and California’s Unfair Competition Law and Consumer Legal Remedies Act.
Al-Ramahi wants to represent a nationwide class and California subclass of consumers who “incurred unreimbursed losses due to fraud on Venmo.”
A consumer filed a separate class action lawsuit against PayPal in March, accusing the company of misrepresenting fees associated with its “buy now, pay later” service.
Have you been defrauded while using Venmo? Let us know in the comments!
The plaintiff is represented by L. Timothy Fisher, Philip L. Fraietta and Julian C. Diamond of Bursor & Fisher, P.A.
The PayPal Venmo fraud class action lawsuit is Al-Ramahi v. PayPal, Inc., Case No. 5:22-cv-03632, in the U.S. District Court for the Northern District of California.
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181 thoughts onPayPal class action alleges company does not reimburse customers for Venmo losses
Add me please and thank you
Add me please
My 42 yr old son died May 2023 heart attach. I am trying to close accounts due to his death but also fraud and theif of money from account after his death. Venmo is having at least 3 to 4 people e-mail me, To each of them I never would wish this on anyone, but let them bury their child. It hurts and they are just trying to break me down. Paypal will not give me any info, have no idea if that has fraud also. I did file a police report. We are talking about an estate of 600.00 dollars no car, never married, and no kids
I’ve had money stolen from me by venmo and PayPal. I’m now locked out of my PayPal permanently because of hackers!! PayPal will not return my monies. Please add me!!
I was hacked through PayPal along with Venmo. Add me to this list. Hacked from 10/04-06/2022 and there is more to this story as in some of you have gone through. I walk the walk with you.
Please add me.
I’ve been frauded by Venmo and PayPal please add me
I used Venmo when a customer bought used car from me. Venmo kept my money.. some BS about user agreement. WTF?? IF their I office’s were close to me I would go to prison for life over this . Venmo is a fraud
I had my PayPal account hacked back in December and I still cannot get into my account and I had money in my account so I have lost my account and my money
Add me!
Venmo has refused to return an authorization hold it charged on February 17th. First it gave me the 30 day, look at user agreement excuse, then merchant settling and now, 40 days later its, engineers have been made aware of the problem but can’t fix it, don’t know when it will be fixed. So, basically tough luck. I have all chat transcripts, emails and other responses. Ive filed with CFPB complaint. 230317-10612992. I reviewed transactions discovered this is a SOP for them, taking money from auth holds and never returning the balance after the move merchant settles. There are multiple occurrences on my account. Shouldn’t Synchrony and Bancorp be held accountable as well?
Please add me. Venmo offered me “Purchase Protection” which I accepted when I placed a $1500+ deposit for parts on a spa repair. When the repair guy never showed up, I asked Venmo to refund the money under the purchase protection program that they offered me. and they responded to say that Venmo is for transacting with friends and I should have known I was taking a risk. I would argue to the contrary. Where I might have been hestitant to send money, the offer of purchase protection gave me a false sense of security in sending money early.