WARRENTON, Mo. — A man from Warrenton, Missouri, reached out to the I-Team, telling us he lost nearly $2,500 after a fraudulent withdrawal on his PayPal account. And he said the company refused to refund him the money.
In his hometown, Steve Brooks has made a living helping people.
“That just need a ceiling fan installed or a bathroom remodel or, you know, they have a leaky faucet," he said.
He works 10-hour days as a repairman. But for the last three months, he’s had a new side job — trying to get back stolen money.
“I spent 400-plus minutes on 17 phone calls," said Brooks. “My entire balance from my PayPal account was taken and transferred to a bank account that wasn't mine... They're basically saying that I had to do this because it was with my account.
“So are they saying they don't believe you?” asked Senior Investigative Reporter Paula Vasan.
“Yes. Yes," he said. “They told me that my password wasn't changed, that the IP address used was my IP address.”
But two days after our I-Team got involved, PayPal refunded him the total amount. PayPal told us it's customer support team reviewed Brooks’ case and resolved the matter. A spokesperson told us the security breach was not a PayPal specific issue, saying it was a device security problem.
The company also said the security and privacy of all PayPal customers and their information has always been a top priority.
“I'm glad it got resolved as quickly as it did," he said. "It's very much appreciated... I've seen you guys work your magic before.”
For Brooks, it’s a relief and a reminder that others may not be as lucky.
“I hope it doesn't happen to anybody else. Unfortunately, I think criminal minds never stop," Brooks said.
More than 75% of adults in the U.S. use money transfer sites like PayPal, according to The Consumer Financial Protection Bureau (CFPB). The federal agency says it means billions of dollars are at risk. It’s because money stored on these sites is not federally-insured.
You can visit the CFPB website for safety tips when using mobile payment services.
The CFPB also suggests contacting the Federal Trade Commission for resources for consumers about identifying and avoiding fraud.
“Once it's gone, it's gone," said Sarah Wetzel, a spokesperson with the Better Business Bureau.
She has tips to protect your money on sites like PayPal, Venmo and CashApp.
“It's not like the traditional banking services that do offer that protection against fraud," she said.
BBB's tips for using payment services:
Read the fine print (Understand what protection is offered)
Link to your credit card (You’ll have better protection from your credit card company)
Set up two-factor authentication
At the first sign of fraud on your account, change your password
Don’t leave balances on your account
Check your credit report annually to spot identity theft (annualcreditreport.com)
Following our interview with Brooks, he said he's made his account more secure.
“I would just tell people, you know, beware. I mean, for me, it's been a real struggle," said Brooks.
We asked PayPal how, in light of scammers, the company is re-examining its processes and its fraud department. PayPal responded saying it can manage customers' money with confidence.
A PayPal spokesperson tells us: “At PayPal, we take the safety and security of our customers and their information very seriously. Whenever someone suspects they are the target of a potential scam, or they have had an unauthorized or unsatisfactory transaction, we always recommend that they contact Customer Support directly for assistance in resolving the matter.”
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