PayPal Helping The IRS Track Down Tax Cheats

from the so,-please-launder-elsewhere dept

A few years ago, in a widely publicized article, eBay's liaison to law enforcement proudly talked about how the company would hand over all sorts of info to law enforcement if asked (even without a subpoena). So, it shouldn't come as much of a surprise eBay-owned PayPal is helping the IRS track down tax cheats by handing over the identity of customers using PayPal from a variety of well known tax havens. Of course, anyone who thought it was a smart idea to launder money through PayPal probably shouldn't be all that surprised when federal investigators show up on their doorstep.

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  1. identicon
    Robert Miles, 7 Nov 2005 @ 11:40am

    Re: No Subject Given

    When I used paypal for 2 years of ebay buying and selling via paypal without a single problem, I ran into a problem buyer. One who purchased a $450 guitar from me. I quickly shipped the item as soon as the auction had ended and the paypal payment was confirmed as received. The item was shipped as FedEx, complete with tracking number and signed delivery form (as I always ship my items as). Two weeks had gone buy and the sale was long since in the back of my mind, because as far as the confirmation on FedEx's website stated, Package had been signed for and delivered. Wouldn't you know it. It was bound to happen. The buyer did a charge-back, stating that the item had not been received. This was all within 20 days of the auction ending, and the guitar being shipped and signed for by the same name that was used during our email conversations back and forth.

    I called up paypal within a few minutes of me signing on and noticing that my account balance had been set at -$410. I provided the FedEx information that was requested by paypal to verify that the guitar was shipped. 9 days later, I get a notice from paypal stating that the case was now closed and that I was out of my $450 PLUS the guitar I had shipped and was proven to be received.

    I called back up to Paypal because there had got to have been some mistake as to why the case was closed, even though I provided all of the information requested and FedEx had shown the item being received and signed for by the same name on the "buyer" account. When i finally got on the phone with a real life person, I asked for help in resolving this. The paypal representative told me, "go to church". After a bit of silence from my part, I asked "excuse me?". The paypal rep had said once again, "my advice to you is, go to church". I ignored this second time in which she said this, and continued to seek out help in resolving this obviously flawed transaction of paypal's part. The representative continued to mention that becoming more religious would be a better solution to solve this $$$ error on behalf of paypal. As you can see, that phone call didn't get any further. I never received my money back. And after being a member for about 2 years without any errors, this incident of $450 and the inappropriate religious suggestions by paypal's representative, lost them another member. I now only check/money-orders to receive payments. and when buying, i look for items being sold by persons within 100 radius of where i live - so I can meet the seller, face-to-face.

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