paypal hack buy“On Christmas Eve morning, I received an email from PayPal stating that an email address had been added to my account,” Krebs explained in a detailed post on the matter. “I immediately logged into my account from a pristine computer, changed the password, switched my email address back to the primary contact address, and deleted the rogue email account.”“I then called PayPal and asked how the perpetrator had gotten in, and was there anything else they could do to prevent this from happening again?” Krebs continued. “The customer service person at PayPal said the attacker had simply logged in with my username and password, and that I had done everything I could in response to the attack. The representative assured me they would monitor the account for suspicious activity, and that I should rest easy.”
“Twenty minutes later I was outside exercising in the unseasonably warm weather when I stopped briefly to check email again: Sure enough, the very same rogue email address had been added back to my account. But by the time I got back home to a computer, my email address had been removed, and my password had been changed. So much for PayPal’s supposed ‘monitoring;’ the company couldn’t even spot the same fraudulent email address when it was added a second time,” he added.
PayPal then locked the account as soon as hackers tried to wire money to an email account belonging to Junaid Hussain, a 17-year-old hacker from Team Poison who joined ISIS and who is believed to have been killed in a U.S. drone strike in 2015.Regulation[edit]
Thiel, a founder of PayPal, has stated that PayPal is not a bank because it does not engage in fractional-reserve banking.[83] Rather, PayPal"s funds that have not been disbursed are kept in commercial interest-bearing checking accounts.[84]
In the United States, PayPal is licensed as a money transmitter, on a state-by-state basis.[85][86] But state laws vary, as do their definitions of banks, narrow banks, money services businesses and money transmitters. Although PayPal is not classified as a bank, the company is subject to some of the rules and regulations governing the financial industry including Regulation E consumer protections and the USA PATRIOT Act.[87] The most analogous regulatory source of law for PayPal transactions comes from P2P payments using credit and debit cards. Ordinarily, a credit card transaction, specifically the relationship between the issuing bank and the cardholder, is governed by the Truth in Lending Act (TILA) 15 U.S.C. §§ 1601-1667f as implemented by Regulation Z, 12 C.F.R. 226, (TILA/Z). TILA/Z requires specific procedures for billing errors, dispute resolution and limits cardholder liability for unauthorized charges.[88] Similarly, the legal relationship between a debit cardholder and the issuing bank is regulated by the Electronic Funds Transfer Act (EFTA) 15 U.S.C. §§ 1693-1693r, as implemented by Regulation E, 12 C.F.R. 205, (EFTA/E). EFTA/E is directed at consumer protection and provides strict error resolution procedures. However, because PayPal is a payment intermediary and not otherwise regulated directly, TILA/Z and EFTA/E do not operate exactly as written once the credit/debit card transaction occurs via PayPal. Basically, unless a PayPal transaction is funded with a credit card, the consumer has no recourse in the event of fraud by the seller.Criticism[edit]
See also: Criticism of eBay
In 2003, PayPal voluntarily ceased serving as a payment intermediary between gambling websites and their online customers. At the time of this cessation it was the largest payment processor for online gambling transactions. In 2010, PayPal resumed accepting such transactions, but only in those countries where online gambling is legal, and only for sites which are properly licensed to operate in said jurisdictions.[113]
If an account is subject to fraud or unauthorized use, PayPal puts the "Limited Access" designation on the account. PayPal has had several notable cases in which the company has frozen the account of users such as Richard Kyanka, owner of the website Something Awful, in September 2005,[114] Cryptome in March 2010,[115][116][117] or April Winchell, the owner of Regretsy, in December 2011. The account was reinstated, PayPal apologized and donated to her cause.[118]
In September 2010, PayPal froze the account of Markus Persson, developer of independent video game Minecraft. Persson stated publicly that he had not received a clear explanation of why the account was frozen, and that PayPal was threatening to keep the money if they found anything wrong. His account contained around €600,000.[119]
PayPal"s partner MasterCard ceased taking donations to WikiLeaks in 2010, and PayPal also suspended, and later permanently restricted, payments to the website after the U.S. State Department deemed WikiLeaks activities as illegal. Online supporters and activists retaliated by subjecting
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