PayPal Investigated For Anti-Fraud Practices
from the anti-fraud-a-fraud-for-them? dept
Just as PayPal settled charges from New York about confusing users into believing they had the same level of protection on a PayPal account as on a credit card, it seems the FTC is investigating the company for their anti-fraud practices. You might find it odd that a company would get investigated for their anti-fraud practices, but it appears that a lot of people are complaining about the way PayPal handles suspected fraud cases. They will often freeze the accounts where fraudulent transactions are suspected while they investigate. Often, those accounts will have a lot of money, which PayPal is free to earn interest off of, while the owners of those accounts can’t access their money. If the account is fraudulent, perhaps that’s a good thing – but for legitimate users who have thousands of dollars inaccessible for many months, it’s a bit of a pain. While preventing fraud is clearly a good thing, perhaps PayPal needs to be a bit more responsive in investigations, and explain the risks more clearly to users.