Fraud by Family and friend, PayPal reversed the fund to scammer.

[Awang06]

I got connected with a lady <Removed> on Wechat.  She said she is working on marketing service and needs more customer to review to get more attention from online users. She said she will send money to me by PayPal first then I pay someone else by Zelle. First a few transactions were normal. Then on 2/11/2021, she transferred $350 to me and asked me to transfer $300 back to her and keep $50 as commission. Since she sent money to me before without problem. I did transfer $300 to her. Then she transferred $400 to me and asked me to instant withdraw. I did. But PayPal  gave message says that the transferred is under review. I didn't pay attention. I thought the next day the transferred will be done. Since I still have balance on PayPal account, I transferred fund by zelle to the appointed person. On 2/12, I got emails from PayPal says the sender claimed those 2 transfers were unauthorized transactions and will reverse it. I disputed it but PayPal still reversed the $750 to scammer. I have been trying to dispute this fraud issue and asked PayPal to pay attention such issues. Scammer sent fund to victims first then claim it was unauthorized transaction, PayPal assisted these scammers. 

Anybody has any suggestions how to ask PayPal to hold the money. The scammer may not have money on their account or close their account already. 

[kernowlass · Accepted solution]

@Awang06 

You fell for a common scam, you accepted funds and then passed them on using another payment processor, a typical scammers trick.

Did you not think why that was necessary and that the sender could not use Zelle themselves?

An unauthorised transaction means that an account holders Paypal account was hacked and used without their consent by the person sending you the funds.
If Paypal check IP addresses and found in favour of that account holder then of course they are reimbursed.

However you would not lose out either as long as you met ALL the requirements of seller protection, HOWEVER you had no seller protection as you were not selling anything just passing on money to someone else.

[Awang06]

Thanks, Kernowless. I know it is stupid and no matter how I regret what I did. I lost $2000 so far. And She has a group or she has multiple PayPal accounts, one fund I received as product or service. Now the account holder who disputed it as unauthorized purchase. And what should I do now? The fund I sent by Zelle can not be get back. The fund I received from the scammer, she is disputing with PayPal to get them back. Can I do something? 

[Awang06]

I received the fund $340 from sender by family and friend channel. And I sent the fund to another person by her instruction by zelle. Now I know this person is scammer. She is disputing the fund as unauthorized purchase $366. But she didn't purchase anything from me. How can she dispute it as unauthorized purchase? How can I report it to PayPal and dispute it? I didn't sell, she didn't purchase.