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PayPal: How do people get caught?

Discussion in 'Making Money' started by John4467, Dec 3, 2019.

  1. John4467

    John4467 Newbie

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    So i've heard of a lot of users getting caught using PayPal when their account was reported to the IRS. Two examples:

    1) https://torrentfreak.com/movie-pirate-pleads-guilty-faces-five-years-in-jail-forfeits-millions-of-dollars-191126/
    2) https://torrentfreak.com/millions-in-crypto-cash-seized-in-movie-piracy-investigation-191124/

    My question is, since you don't need an ID for a PayPal account, why can't you just fake the information? Even if they report you, your account info is meaningless, and you can just buy Crypto with the Palpal account right? What am I missing here?
     
  2. 4WardThinking

    4WardThinking Registered Member

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    after you meet a certain threshold of money in a paypal account they have you verify your social security number (or corresponding information dependent on your country) if you don't use your info you're looking at felony charges, if you use your info your subject to them filing a 1099 to your social security number
     
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  3. John4467

    John4467 Newbie

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    Great answer. Thank you.
     
  4. Aty

    Aty Jr. VIP Jr. VIP

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    Do yourself a favor and avoid Paypal. You'll thank me later. I have lost a lot of money because of they being ignorant and unfair. I hope they die in pain and burn in hell.
     
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  5. Sizus

    Sizus BANNED BANNED

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    But it’s safe to use it , only for purchasing :D
     
  6. Aty

    Aty Jr. VIP Jr. VIP

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    Sure, for buying it's a freakin' goldmine. You receive the purchased item/service, you open a case and you end up getting a refund with little to no effort.
    On the other hand, if you're a seller, you're pretty much screwed with Paypal.
     
  7. driulis

    driulis Jr. VIP Jr. VIP

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    But if you are a seller and do not accept PayPal then... good luck with sales :D
     
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  8. se900se

    se900se Jr. VIP Jr. VIP

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    I report PayPal earnings to IRS
     
  9. Makemeproguys

    Makemeproguys Senior Member

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    PayPal is exellent if your the buyer, the paypal and Amazon system are too much focused on the buyer. They both don't Care about seller, they need more buyers than sellers . More buyers on a platform will automatically force the seller to sell on it.
     
  10. Peng School

    Peng School Junior Member

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    Yes, i myself and my partners are doing really well with PayPal, so I’m do encourage using PayPal to sell and transact legally.
     
  11. imouni.houni

    imouni.houni Newbie

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    Paypal they check the trail, also as @4WardThinking stated they do follow ur info. Had a lot of issues with Paypal abruptly freezing account, would avoid them if I can.
     
  12. Marketsell

    Marketsell Junior Member Marketplace seller Premium Member

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    How much funds had you transferred through your pp account? after you reach some limits - they will ask you an additional docs
     
  13. Gogol

    Gogol Jr. VIP Jr. VIP

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    I dunno about US but Indian paypal earnings automatically get transferred to the linked bank account. Even if someone opened an account with fake details, how will he/she enter fake bank details? Sure, fake bank accounts... but that way... you are basically becoming a fraudster. I report my earnings every year as income from other sources, and have to pay 30% as tax. Could be different for US/UK/EU though.
     
  14. ebayer9

    ebayer9 Newbie

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    It's not that simple, unfortunately.

    What would be your IP address solution? You might say "Just use a VPN!" and in response to that I would say "What VPN?". Most VPNs claim not to keep any logs, but many times this has proven to be a lie when subpoenad by the government and apparently non existent logs magically appear out of nowhere.

    Let's assume that you did have a good IP address solution. Sadly, this is not enough. It's naive to think that just using a VPN would be enough and it would keep you anonymous and unable to track.

    What I am trying to say, is that Operational Security is a field of its own. That must be studied in great depth, if you want to even attempt to evade the authorities. Your average dude hosting pirated websites is most likely not willing to do all that learning.
     
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  15. Luco

    Luco Jr. VIP Jr. VIP

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    "For a fee, the sites allowed subscribers to stream movies and TV shows"

    This is the real reason why he got 5 years in jail.
     
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  16. Goodi OG

    Goodi OG Regular Member

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    Paypal is evil. Avoid them!
     
  17. Gogol

    Gogol Jr. VIP Jr. VIP

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    And this, too...
     
  18. B1TCS

    B1TCS Regular Member

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    You can't avoid taxes just because you are using paypal... lol
     
  19. Global360

    Global360 BANNED BANNED

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    It's very easy to avoid such limitations/threshold - RUN MULTIPLE STEALTH ACCOUNTS :)
     
  20. nasa2009

    nasa2009 Junior Member

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    yep especially for someone in the US. for someone who is going to use copyrighted material the last thing you want is getting attention from the IRS . if i were him i would stick with ads . there are website that only use ads and it seems they are doing well, like yespornplease/ com