posted on February 15, 2002 05:08:17 PM new
The Paypal Myth: No such thing as a Verified User!
Here is a scenario that I would like the skeptics out there to try and see how far they get:
1. If you have already verified your bank account try these things to test the value of Paypal verification:
a.) Click on your profile tab after logging into Paypal.
b.) Under the heading Account Information click on Street Address and add any address you like with a valid city and zip code.
c.) Select the new bogus address and click the make home and make business buttons and follow the prompts.
d.) Delete the other “verified” address.
If this doesn’t illustrate why fraudsters (especially foreign ones) have a picnic with Paypal then borrow a friends credit card and see how easy it is to register someone else’s credit card under your “verified” account. Shoot you can even change your primary “verified” account address and make your verified address match the card! Not to mention I’m sure a fraudulent buyer could easily switch the account address after ordering something and claim an item wasn’t shipped to the “verified” address.
As you can see a “verified” address means absolutely nothing. Anyone with someone’s stolen personal information and any credit card info can setup a “verified” Paypal account in days and be scamming people before any indication via mail or paper has alerted the owner of the credit card. When I first opened my account with Paypal, which was before the X.com merger, I went through a real verification process in which I received a code via the mail before I could send money and attach a bank account.
The worse part is that Paypal is aware of the fact that its system lends itself to fraud and yet instead of requiring a REAL verification and the maintenance of a real “verified” address they have in essence made it easier to initiate fraudulent transactions and harder for sellers to recover from them by implementing a system where the “verified address” is instantaneously anything they wish it to be.
I called Paypal customer service concerning a transaction in which the seller asked me to ship to another address. I was still a virgin in the ways of Paypal and called to ask how I could register another ship to address. This was when I was informed that all I had to do is register a credit card with the address and make the address my primary address. Granted I was naïve but the fact that the customer service rep was advising me on how to circumvent Paypal’s security is amazing. I was surprised that they didn’t want me to fax additional information like my driver’s license with my signature and a note authorizing another address! The worse part was that at no time did the customer support person tell me that I shouldn’t be attempting to do this!
posted on February 16, 2002 06:53:58 AM new
To confirm an address they check it against the credit card statement address of the credit card that you registered with paypal.
For more information you might want to check the duplicate thread the above poster placed in the ebay section.
But in brief he is a little confused.
Yes you can add any address you like, but it won't show as confirmed to sellers UNLESS IT IS unconfirmed.
And in short unless the seller is stupid and chooses to go against the advise that paypal posts on transactions with an UNCONFIRMED address, there will be less of problem with fruad when denying these payments and insisting on confirmed addresses.
posted on February 16, 2002 08:47:14 AM new
If you have a credit card address "confirmed" then change your HOME and Business address to another address and choose to update the credit card info it is rather easy to confirm someone else's credit card on your account. Either way I don't want to argue with you, I can show you easy enough through a step by step guide with screen prints or a screencam recording. The truth is that anyone with a degree of intelligence can easily masquerade as a "Verified" user with a "confirmed" address that has never really been confirmed in a way that most users think that it has to be. This is especially dangerous with hacked accounts, which Paypal has had a problem in the past and I would venture still has a problem with. I personally believe that Paypal should insure all transactions involving stolen passwords, hacked accounts and such.
