Q: Do PNC Cashapp and PayPal have any liability for failing to identify fraudulent transactions on their platforms?
On September 3 we realized that our bank account had dropped in value by more than expected through our normal use of the account. Our research showed that more than $40,000 had been taken by unauthorized users (almost 50 based on our understanding of PNC account statements) over a period of several months. The bulk of the transactions were made through Cashapp ($24,300) and PayPal ($8,400). Not once over the several months of fraudulent activity and literally thousands of separate transactions did PNC notify us of suspected unauthorized use of the debit card. To the best of our knowledge neither Cashapp nor PayPal notified PNC about the obvious pattern of fraudulent transactions involving the PNC debit card. PNC's website promises zero liability for unauthorized use of PNC debit cards and both Cashapp and PayPal claim to have robust and effective fraud detection software.
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- Virginia
- (804) 250-1721
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- Answered
A: If you are the victim of theft or fraud you should report the situation to your local law enforcement agency. If they take no action, you can follow up by trying to meet with the local Commonwealth's Attorney's Office. As far as civil litigation goes, yes there is potential liability. There has even been a recent class action suit against CashApp (https://www.cbsnews.com/news/cash-app-money-settlement-2500-how-to-file-a-claim/) but the recovery is relatively small compared to the amount you have lost. There are deadlines associated with lawsuits so I suggest contacting a plaintiffs' attorney in your area for a consultation; they should be able to recommend a particular course of action.
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