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Jan31

Paypal: the safer way to pay. Says who?

Posted at 1:15 PM | Filed under Technology | Permalink

My Paypal account was hacked a few weeks ago. I didn't want to actually talk about it until the issues have been resolved.

A few weeks ago, I was doing my work, my Outlook notified me that Paypal received payment from me to a Germany-based VOIP Company.

Of course, I freaked out and checked my Paypal to see if anything was tampered with. And of course, it was not just some phishing thing-- someone actually withdrew money from my bank account and used the money to pay for their VOIP service.

Anyways, I called my bank to see if I can block the transaction, and they said that they could, as long as the transcation hasn't already gone through. Since my Online Banking numbers are not updated in real time, it's hard to say it actually went through.

Then I frankically changed my passwords. This process was so damn annoying because even when you have a password in mind, different sites have different pasword rules, which means you end up having so many different variations of the password.

An hour after, Paypal's bots recognized some suspicious activity with my account and froze it. While I guess this is impressive, they did not make retroactive my account to what it was before the unauthorized transactation. I was still required that I go through the 'Resolution Centre' process.

It turns out that my bank was able to block the transaction, so actually I don't really give Paypal any credit. I know this because Paypal notified me that my bank declined the fund transfer, and that my Paypal account will be charged as a result.

Luckily, a few days later, the whole dispute was resolved, and by account was back to the expected amount.

Wow. Online security concerns are quite serious. Maybe I'll return to making transactions the old-fashioned way. Geez.


Comments (5)

1

Leo

January 31, 2008 10:04 PM

My credit card info was actually stolen 2 weeks ago

2

Eric

February 1, 2008 2:28 AM

Yeah, very unfortunate. But in this day and age, it's almost a necessary risk. At least for me it might be.

3

ramanan

February 2, 2008 10:48 AM

You shouldn't link PayPal with a bank account, just a credit card. It's MUCH easier getting a credit card company to reverse a fraudulent charge than it is for a bank to do so. I bet if the fund transfer had happened in this case the bank would have told you to take it up with PayPal.

4

Matt

February 3, 2008 10:45 PM

thanks for the advice ram

5

Jeremy

February 5, 2008 6:13 PM

Personally I don't trust Paypal. It doesn't seem right that they don't fall under regulations for financial institutions, which ultimately means that there's little I can do in a dispute with the company.


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