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
    ezra burgoyne, 14 Feb 2007 @ 2:57am

    just wow


    wow, just wow.
    i see everyone's drawn out their e-peens for this.

    of course they can give law enforcement access to anyone's records by resetting the password or using special authentication for flagged accounts like a one time pass or a "master key" law enforcement can use on flagged accounts. jesus christ, are you guys that dumb enough to spend 293840 comments trying to show off your knowledge about hash functions and cracking md5, 3des, etc when it doesn't matter? apparently so. even if mention was made in an article about transmitting of a user's "original password", it's probably just an easy way for a journalist to explain the process of giving a third party access to someone's account records.

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