Straight up snakes!! SHARE TO BEWARE!
https://bitcointalk.org/index.php?topic=1550025.msg15579608I finally had the time to call Paypal. On the phone with them now.
Here's the scam and I wouldn't have thought it. There's always some risk but I thought, as with any normal Paypal transaction, that there's buyer protection. NOPE. I discussed with Paypal several issues this network of scammers is doing to skirt right by Paypal security. The problem does begin with the sheer lack of virtually any regulations for Paypal overseas and forget about verification requirements. You can get a Paypal account overseas in most countries as easy as a Gmail account!
Here's how they do it. There's no business. It's fairly large group of scammers, most not even from Germany (I found out a few are) that have setup a crap load of personal Paypal accounts and they process (friends and family) charges just like any other legitimate retail business. There's literally no way without reading the fine print during the process to know that your making a personal money transfer which of course is not a consumer protected purchase. The entire process was exactly the same. Like most other money transmitters, even on the Bitcoin Network, PLEASE make a clear and large point NOT TO SEND THIS PAYMENT if you don't KNOW the other person because you will have ZERO recourse! Granted that this is a big enough case that Paypal is eventually going after them and their bank accounts, but still.
Maybe it's me, who knows, since I've never used Paypal for anything other than business transactions. I barely remembered they even offer an easy was to send money to family back in El Salvador; and certainly didn't notice any difference. I wasn't alone either the more the rep dug into them. It was recently escalated to their top security and fraud dept. Trouble is, just like every other multi-billion dollar multi-national they move about as fast as an elderly lady up to her waist in a tar pit.
Stuff like this would have lasted long back when Karim was watching the store!
The scammers network of accounts *@bitnake.com go to many different bank accounts and are each only used sparingly and most are forcibly closed. Seriously, Paypal can't figure out the gig here? They will soon stop signing up for Paypal accounts using their own domain, and try to continue the scam until the authorities can get the site offline.
Oh well, live and learn. My only concern is to get the message out to as much of the btc community as possible so not to discourage the newbies! It's a very exciting times for the greatest payment system in history!
Peace and Love
