There Goes PayPal As A Money Laundering Tool

from the for-those-of-you-who-do-that-sort-of-thing dept

Not that any of you would be using PayPal to stash cash overseas to hide it from the IRS, but if you were doing so... you might want to look for an alternative. We had noted last year that PayPal might be cooperating with the IRS, but apparently they were resisting at least some aspects of the requests from the IRS and the Department of Justice. However, a court has now ruled that the IRS has every right to investigate potential tax cheats using PayPal by requiring the company to turn over data on users who have credit cards from certain "tax haven" countries. It still is somewhat amazing that people actually would think that hiding money via PayPal was likely to work.

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  1. identicon
    Randy, 12 Apr 2006 @ 5:14am

    Learn cryptography

    It is clear none of you debating me understand the concept of a one-way hash. No, it is NOT possible for eBay to provide the original password; same with Paypal. This is why you cannot get them to send you your password; they can only reset your password. Have you noticed other places, that are even less secure, such as E*Trade, do the same?

    This is also part of Sorbanes Oxley requirements. Welcome to computer science 101.

    Even knowing the key, finding any set of characters that hashes to the same value is incredibly difficult (read: computing years of time).

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