Is there really a way to stop fraud from happening on the internet? Well I don’t think there really is but we can do things to try to prevent it from happening and that’s exactly what PayPal tries to do. PayPal has found a new way to try to stop fraud from happening. Many people use PayPal but even if you their identity has been made up (Hansell 1).
The company believes in this so much that they spent $169 million last year to buy Fraud Sciences, an Israeli company that specialized in this sort of data analysis. PayPal says on have never used it PayPal has a file on you. The reason is that if you decide to buy something online and set up your first PayPal account, the service has three seconds to decide if it trusts you or if it will block the sale. PayPal decided that this is a good way to try to prevent fraud because “ Good people on the Internet leave footprints.” Good people always have email accounts, IP addresses, things that accumulate overtime and can be found. However, if someone has made up an identity to try to commit fraud this trial will be hard to find because there won’t be one, which is a good indicator that they will (Hansell 1).
Paypals website says they believe that innovation and careful analysis is the way to beat fraud and that’s why they have developed industry-leading models to review every transaction—and help detect suspicious activity (PayPal 1). PayPal has a way of recognizing customers who use it a lot and get to know them and know they are good people. But when users show up without a PayPal or eBay account, the company can’t start checking them out from scratch if it wants to approve transactions within its three-second window. That’s why it buys data and assembles files on prospective users who have never done business with it.
I think this is a wonderful idea. PayPal has done a great thing for our society because it allows us to be able to not worry about fraud. Technology has allowed for fraud to occur more often and now PayPal has came up with a way to prevent it.
References:
article used : Hansell, Saul. Why PayPal Wants to Know Where Everybody Lives. 19 June 2009. 21 June 2009 http://bits.blogs.nytimes.com/2009/06/19/why-paypal-wants-to-know-where-everybody-lives/.
PayPal. 2009. 21 June 2009
https://www.paypal.com/cgi-bin/webscr?cmd=xpt/general/SecurityFraud-outside.
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