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
    JL, 12 Apr 2006 @ 5:52am

    Re: JL

    First off, my comment was not at all geared towards you so I have no idea why your so enraged in a response towards me. I was simply trying to explain what your average hash is to Ragz.

    Second, let's take a look at what I said shall we?

    "A Hash is a security algorithim that uses a key (a series of letters and numbers) and changes whatever your changing into a series of letters, numbers, and symbols.

    If you have the key that encrypts the password, it's usually possible to unencrypt it."

    Note the word usually in my last sentence. I by no means meant 100% of the time you can reverse a hash, or was I attempting to slander anything you said. Ebay and Paypal very easily could have an algorithim that is very hard to unencrypt.

    Next time try to read a bit more carefully before you blow your hot head around and relate a simple explanation to things like an article denying the Holocaust...

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