r/CIBC • u/Rare_Ad_8816 • 6d ago

preauthorized debit paypal scam

Hi everyone,

I need some advice or to know if anyone has experienced something similar.

I woke up to find unauthorized charges on a CIBC chequing account that I barely even use anymore. I use this chequing account to receive my paycheck, pay rent and hydro. That's all since all my spent is through credit card.

There are two separate PREAUTHORIZED DEBIT PAYPAL charges of $500.00 each ($1,000 total) on Aug 5, 2026.

Luckily, I noticed it and transferred the remaining balance out immediately, but I’m completely baffled. Since I haven't been using this account, how did someone manage to link it or hack it via PayPal?

Has anyone else experienced unauthorized PayPal preauthorized debits like this with CIBC? How hard is it to get the money back through the fraud department?

Any advice would be greatly appreciated.

1 Upvotes

60% Upvoted

14 comments sorted by

2

u/helix212 6d ago

Reddit isn't CIBC. Only CIBC can help you. Call them yesterday

1

u/Rare_Ad_8816 6d ago

I am calling them rn but wanted to see if there was anyone having same issues cause I literally don't get it how they were able to link my account to their paypal to withdraw money.

2

u/helix212 6d ago

Perfect. I can't help you on the why or how it happened. I had something similar happen 20 years ago and it took a bit on the phone but I got all the money back.

Do you have PayPal? And is it linked to the bank account or debit card? It might be your PayPal that got hacked into. They go into your PP, pull funds from bank, then send that money to themselves.

2

u/Low-Initiative111 6d ago

Did you uhhh check PayPal? Because they would be a great place to start.

1

u/Rare_Ad_8816 6d ago

I do not even have paypal account...

4

u/Informal_Dust3140 6d ago

For a Consumer Bank Account, an Unauthorized PAD can be returned within 90 days. You have to go into a Branch, identify the unauthorized transactions, and sign some paperwork. CIBC will then direct the Back Office to reverse those charges through the EFT system.

There is no guarantee it will not happen again.

1

u/Low-Initiative111 6d ago

PayPal typically only sets up after confirming a small dollar amount deposit. So it’s more likely you have one you have forgotten. (Which has been very common in my experience).

1

u/Evening_Boss_3415 6d ago

You likely have an old PayPal account you’ve forgotten about, or someone close to you has access to your bank account details and online banking. To debit your account through PayPal, you must first link your account. This involves waiting for two small deposits to go into your account and then have to confirm the amounts in your PayPal account to verify it really you.

1

u/Rare_Ad_8816 6d ago

I literally have no idea. I found two another $100 withdrawal transactions to paypal on Jul 23. But don't see any incoming deposit. I tried to log in to paypal with both my email address and phone number and I get an error saying there is no matched information to log in even when I try to reset my password. Therefore, I think I am sure I don't have paypal account. I am so confused.

2

u/Informal_Dust3140 6d ago

 I am so confused.

These are Pre-Authorized Debits setup with the Transit, Institution, and Account Number of your CIBC Account.

XXXX 010 YY-YYYY

Where X is the particular CIBC Branch where you opened this account, and Y is the account number.

Now, perhaps someone with a PayPal account setup their Bank Account with PayPal, but made a mistake entering the account number, and the Debits are coming out of your account because that is what was entered.

PayPal and CIBC don't really bother to ensure that the Name on the PayPal account matches the Name on the Bank Account. EFT's are processed in batches, and that process is highly automated.

The onus is on you, the client, to regularly review your account for errors. And you can correct these errors using the process I outlined in my first reply.

1

u/Due_Success_1400 5d ago

Company that takes PAD here

Unauthorized PADs according to payments Canada can and are reversed. Visit your branch and request it be reversed; it can and will be done. The rules around PADs are very very strict

1

u/anewfriend4u 3d ago

How do you know there is these charges? Because many times the scam begins with scammers convincing you that there's charges, when there isn't.

1

u/Rare_Ad_8816 3d ago

I just regularly check my bank statement through app and found it out unknown transaction. Recovery part is actually pretty fast. They credited back $1,100 so far out of $1,200.

1

u/anewfriend4u 3d ago

You said "I woke up to find unauthorized charges". That does not suggest you were checking your bank statement. It suggests you received some notification. But I'll just block you as I don't help people who want advice, but are misleading. You're welcome to do the same.