PayPal Has Never Been Compromised?
15 June 2009
EventHorizon1984
Commentary
It's always interesting when PayPal quantifies what they mean by "low".
According to PayPal, in the WBBM article Suburban Cop Becomes PayPal ID Theft Victim, their fraud rate is 1/3 of 1%.
- "We have a really low rate of fraud, only one-third of 1 percent"
- Charlotte Hill, PayPal
Let's use numbers from eBay's U.S. SEC (U.S. Securities and Exchange Commission) filing, 23 October 2008 10-Q Quarter Report, and see what "one-third of 1 percent" represents.
The worse case amount for PayPal fraud in one year (not one quarter) at "one-third of 1 percent":
- Gross merchandise volume Fraud Committed: $191,933,000
- Net total payment volume Fraud Committed: $154,253,000
We suppose it's good to know that when PayPal says "low" they mean in the hundreds of millions of dollars.
Incidentally, about this PayPal PR statement made in the same article:
- "The PayPal system has never been compromised since its inception"
- PayPal Customer Service
Read the recent article PayPal's security 'flawed' for one out of many PayPal security issues.
"One of the reasons we are safer"
Charlotte Hill, PayPal
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