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.

Reader Comments

Subscribe: RSS

View by: Time | Thread


  1. identicon
    Brad, 12 Apr 2006 @ 5:41am

    Crypto & Policy

    Yes, A one way hash is called a "One-Way Hash" for a reason. However there are other ways to "crack" a password... brute force, etc. which don't really matter what method is used to encrypt it.
    Also any customer service employee who feels like breaking policy can change the password of anyone's account at anytime they choose, login & get any info they want. But if that's what you are arguing, then all I can say is that you should never conduct any money transaction over the internet b/c every company you do business with can do the same.

Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here



Subscribe to the Techdirt Daily newsletter




Comment Options:

  • Use markdown. Use plain text.
  • Remember name/email/url (set a cookie)

Follow Techdirt
Insider Shop - Show Your Support!

Advertisement
Report this ad  |  Hide Techdirt ads
Essential Reading
Techdirt Deals
Report this ad  |  Hide Techdirt ads
Techdirt Insider Chat
Advertisement
Report this ad  |  Hide Techdirt ads
Recent Stories
Advertisement
Report this ad  |  Hide Techdirt ads

This site, like most other sites on the web, uses cookies. For more information, see our privacy policy. Got it
Close

Email This

This feature is only available to registered users. Register or sign in to use it.