A scam victim who lost over $2,500 through Venmo and never received a refund has launched a class-action lawsuit against the firm’s parent company, PayPal.

Bursor & Fisher lawyers filed Mohammad Al-case Ramahi’s in federal court in California on Tuesday, June 21.

It claims that users who are duped have almost little redress.

“Defendant was required to not misrepresent the unique and dangerous features of the Venmo service in its marketing and in contractual representations,” the suit says. “But it failed to do so.

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“As a result, users like Plaintiff sign up for and use the Venmo service without the benefit of accurate information… and later end up with huge, unreimbursed losses due to fraud.

“Such users never would have signed up for Venmo in the first place if they had known the risks…”

As per the lawsuit, the Electronic Fund Transfer Act requires PayPal to pay fraudulent transactions that were not authorized.

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In April 2020, Al-Ramahi answered to a job posting on Indeed.com.

In response to an email, Al-Ramahi received a cheque for $4,950 to cover the cost of supplies and commodities.

Al-Ramahi consented to transfer two payments totaling $2,450 back to the fictitious firm, one via Venmo, even though the check was a forgery.

The lawsuit claims that the corporation declined to pay him back.

Source: Legal Newsline

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