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
    Andy, 12 Apr 2006 @ 5:30am

    Re: Learn cryptography

    Randy is quite right - for a lowdown on the difficulty of brute-forcing a one-way hash, check out the link below, using MD5 as an example:

    To quote the article:

    "To find such message (assuming it exists) it would take a machine that could try 1,000,000,000 messages per second about 1.07 times 1022 years. (To find m would require the same amount of time.) "

    If you're able to decrypt such a cipher it's usually because there is a particular weakness in the algorithm, or because you are in possession of information that will give you an edge. Either way:

    1) Why would eBay waste their time cracking a password when they can change it?

    2) We can safely assume that a company making the money eBay does has invested funds in ensuring a secure solution for user passwords.

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