How CoinPal avoided PayPal fraud | Bitcointalksearch.org

1qaz2wsx987

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Quote from: casascius on July 18, 2012, 12:05:46 AM

I think you sold me my first bitcoins at 0.26 each. I bought like 500 coins, and actually did appreciate the phone call. If I remember correctly, you wondered why I was interested in buying them, and I replied something along the lines of "I dunno, I think these are cool and just want to own a few to try them out.

Wow. where are you now ? a billionaire maybe?

dooglus

legendary

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Quote from: hmcclungiii on December 24, 2018, 01:39:51 PM

There is a coinpal.eu that is a scam, they got me for approx $780 yesterday.

Bitcoin address: 12awVrBX3J95qXjDKC7btodpL27mxgg2fF

This thread is about a service which closed in 2011. Your post is offtopic here.

hmcclungiii

newbie

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There is a coinpal.eu that is a scam, they got me for approx $780 yesterday.

Bitcoin address: 12awVrBX3J95qXjDKC7btodpL27mxgg2fF

americandesi

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BTC < > INR & USD

Excellent writeup mate.!

monkee

full member

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i wish you could give the specifics, just for the sake of an interesting read but i understand why you can't. good info, thanks!

Elxiliath

member

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It's unfortunate that you were unable to continue such a service. I know there has been much controversy with bitcoin being used at time for less then legal actives, but that definitely doesn't mean that all activities associated with it are illegal. As bitcoin continues to grow I guess it's bound to happen than those who they may directly or indirectly loose business too would be shunned.

J-Norm

newbie

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A great write up. Thanks for the service.

davout

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1davout

very interesting read

kuzetsa

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Quote from: rjk on July 17, 2012, 03:06:05 PM

Excellent writeup, mndrix...
((...snip...))

Seconded / agreed.

Though on the subject of paypal's ToS, I won't comment.

Raoul Duke

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EclipseMC, Inaba's pool, no?

DeathAndTaxes

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Gerald Davis

Quote from: Raoul Duke on August 05, 2012, 12:44:02 PM

D&T, TheBitMint got shutdown cause the kid used one(or several) Non-Verified Paypal account(s) and when he reached the account limits he couldn't verify cause he's only 17, remember? You should remember, because you were burned on it.

Indeed maybe not the best example but just pointing out that it is like PayPal only cares about limiting fraud or the risk of digital goods. Maybe the OP and the pool (man for the life of me can't remember which one) are better examples. Very low and no fraud and still shutdown without reason or recourse. The OP was even told he was authorized. He was "authorized" AND kept his fraud to a minimum something which PayPal should have rewarded and instead he got slammed.

Dysfunctional.

Raoul Duke

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D&T, TheBitMint got shutdown cause the kid used one(or several) Non-Verified Paypal account(s) and when he reached the account limits he couldn't verify cause he's only 17, remember? You should remember, because you were burned on it.

DeathAndTaxes

donator

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Gerald Davis

Quote from: red123 on August 05, 2012, 06:44:02 AM

Exactly. some bitcoin people act as if PP has some kind of personal vendetta (besides competition) against bitcoin when that is not true at all.

That isn't exactly true. TheBitMint (and many others) have gotten shutdown simply for selling Bitcoins and not even having fraud. One pool offered payouts in PayPal. No bitcoins actually exchanged hands and since the pool was paying out (i.e. funds only going to users not from them) there was no risk of chargeback or fraud. PayPal also shut them down.

The problem with PayPal is that they are very dysfunctional. Even if you get permission from one dept it doesn't mean that won't change later, or be counteracted by another department. We payout using PayPal but keep the amount of funds limited on PayPal limited and are under understand that PayPal could shut us down any second without reason or recourse. We have taken every precaution possible: only sending PayPal never receiving, a year long spotless no fraud record, business account, 2 factor authentication, paying fees (no "gifts"), advising PayPal in advance of our significant transaction volume, prefunding our account using only ACH, providing PayPal a letter from our bank, etc. Even with all that we might still be offering PayPal payouts in a year or shutdown in a week.

BitBuster

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This thread should be stickied as a useful resource for anyone developing bitcoin services.
A sage, informed and useful post mndrix, thank you!

BB.

PayPal

newbie

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Well I declare! Behind the times indeed.... why I remember... um... Does 9/11 count? Embarrassed

red123

sr. member

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Quote from: mndrix on July 18, 2012, 01:56:43 PM

Quote from: BadBitcoin (James Sutton) on July 17, 2012, 11:49:44 PM

also paypals anti-fraud department is extremely good, stolen accounts are almost always flagged even if they use an IP in the same city.

PayPal's anti-fraud measures are decent and I relied on them as an initial filter. However, I caught many fraudulent orders that PayPal missed. Their system is optimized for physical goods. They do automatic chargebacks on digital goods disputes, so they have little incentive to improve there.

Exactly. some bitcoin people act as if PP has some kind of personal vendetta (besides competition) against bitcoin when that is not true at all. The fact of the matter is PP does not support digital goods, even on eBay. I have sold numerous digital goods and have been scammed on a few of them, from legitimate eBay users wnho even eventually got out of my negative feedback.
PP simply is not an advanced company, they keep it very simple and are behind the times. Things are starting to sell digitially and they need a lot more protection there. Adequate proof (beyond a reasonable doubt using logic) that would stand in a courtroom does not stand with PP. PP's definition of proof is a bit different and very limited.

mndrix

vip

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Quote from: dacoinminster on July 18, 2012, 03:19:02 PM

Any chance we can get you to share what you're up to lately? Bitcoin-related, I hope?

Unfortunately, I've spent most of the last year on non-Bitcoin projects. I've spent only a little time each month on my next Bitcoin project. It's something others have tried and failed. I'd rather not announce any specifics in case I meet the same fate. Better to show than tell, I figure.

dacoinminster

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Rational Exuberance

Quote from: mndrix on July 18, 2012, 02:01:23 PM

Not to use PayPal again

I had planned to accept credit card payments instead. Over the last year, other ideas have consistently seemed more fruitful so I'm not pursuing credit cards anymore.

Any chance we can get you to share what you're up to lately? Bitcoin-related, I hope?

notme

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Quote from: mndrix on July 18, 2012, 02:01:23 PM

Quote from: notme on July 18, 2012, 12:26:26 AM

What was your plan to avoid having your account frozen again?

Not to use PayPal again

I had planned to accept credit card payments instead. Over the last year, other ideas have consistently seemed more fruitful so I'm not pursuing credit cards anymore.

Ah. Good plan

.

mndrix

vip

Activity: 447

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Quote from: notme on July 18, 2012, 12:26:26 AM

What was your plan to avoid having your account frozen again?

Not to use PayPal again

I had planned to accept credit card payments instead. Over the last year, other ideas have consistently seemed more fruitful so I'm not pursuing credit cards anymore.

Topic: How CoinPal avoided PayPal fraud (Read 16495 times)