Paypal allowed scammer transactions even after being informed they were fraud. What do we do?

[Wundt]

My wife was scammed and was convinced by the scammer to give them her Paypal information. The scammer used the information to initiate multiple transactions on Paypal, including several between her and myself.  When I realized what was happening, I had her hang up, we changed our passwords, we froze our accounts, and reported the fraud to Paypal immediately.

Paypay responded to my fraud report with "We don't think its fraud" and allowed the transactions to continue anyway.     

They now are saying we owe them money for those transactions. Efforts to get them to reconsider, escalate, and undo those transactions have gone no where.  Even though we have presented evidence that the transactions were fraud, they refuse to change their decision.  We are now facing multiple calls and emails from Paypal for fraudulent transactions.

What should we do?

[kernowlass]

@Wundt 

Your wife ''gave'' a stranger her Paypal account information !!!  😯

You were then scammed and want Paypal to foot the bill for your mistake??? 

Do you hand out your credit card number and security codes to strangers as well?

No sorry as that person was allowed access to your wifes paypal account BY your wife then she is responsible for any charges made on that account.

[Wundt]

You missed the most important point. PayPal was informed of the fraud BEFORE they processed the transactions. My wife was foolish, but the entire situation could have been resolved if they had acted on our report. Instead, they rule it was not fraud and allowed the payments.

[kernowlass]

@Wundt 

Paypal can't legally stop a processing transaction. They can only try and recover the funds for you if the payment was unauthorised.

However that was not the case as you had willingly given the account information to someone else to use.

[Wundt]

I now know I can ignore your comments. 

Paypal - like any financial institution - can LEGALLY place holds and challenge transactions they believe are potentially fraud.  In fact, they did place temporary holds and cancel some of the transactions, but allowed others to proceed.  However, they lifted those holds when they reviewed the case and decided it wasn't fraud.  Note... all other parties involved in the transaction agree it is fraud, only Paypal is refusing to acknowledge the fraud. 

[kernowlass]

@Wundt 

Legal advice from the person that 'gave' their paypal account information to a stranger, right lol.