PayPal is currently the largest and probably the most convenient money transfer platform in the world with over 220 million users and offering transfers in more than 25 currencies.
Due to its popularity, efficiency and convenience, PayPal has grown to be the most preferred money transfer platform among dark web communities that employ fraudulent procedures to facilitate illegal transfers of funds from stolen credit cards or hacked PayPal accounts.
As a result, PayPal has taken and continues to employ precautionary measures to ensure that their services are not used by individuals who facilitate illegal transfers of funds across different countries.
In the long run, if more people are scammed using a particular platform (in this case PayPal), then the company will face reputational damage, which may have the effect of jeopardizing its activities leading to low revenue and lack of trust from its user base.
Despite the fact that some measures have been put in place to ensure that both the buyer and seller are protected, there are still persons who can maneuver and cheat the system in a variety of ways—thus proving the ineffectiveness of the measures put in place.
The good news is that with what has been put in place, the various means fraudsters use have low probabilities of success, which pushes some out business until new methods of cashing out through the system are derived.
Currently, dark web vendors are trying as tirelessly as possible to ensure that their transfers have a high cash out rate. It is in the sense that when they send client funds via PayPal for withdrawal, the chargeback occurs after a few days to ensure that the customer has enough time to remove money before the account is negated.
The process is straightforward, but one needs to understand the underlying basics of transacting through the platform.
The vendors make it very clear in their listings of the type of persons who should pre-order transfers.
Based on the reputation of a seller, the price of the PayPal transfers will vary—mostly ranging from 25 percent to 40 percent of the amount needed.
When users pay higher prices, they have a better chance of success because the vendor is confident with the services they offer. What’s more, one can check reviews of a particular seller on their profile alongside the listings they have made.
The transfers range from as little as $300 to as much as $10,000 depending on the expertise, skill and experience of the dark web vendor.
Not all sellers are the same, as some are more experienced and thus have sources of obtaining cards that have low security, which means they can drain more funds.
When a transfer is facilitated, it is in rare circumstances that funds are not subjected to refunds where the money sent is not returned to the customer.
This occurs when a dispute is not filed, or the receiver of the account can navigate and forge some documents to prove that the funds are legitimate, but in the real sense, they aren’t.
One of the factors for consideration when ordering PayPal transfers on the dark web is the nature of the account, i.e. personal or business.
Business accounts are preferred because the sellers of the money orders assume they’ve been transacting large amounts on a frequent basis, leading to a high probability of success.
Another consideration is the country. Some vendors choose not to offer their services to a particular nation, most likely because they have fallen victim to fraudsters from that specific region.
There is also the issue of having aged accounts which are very active. The system uses artificial intelligence technology to automatically identify if an account has been receiving funds over an extended period.
If a PayPal order is placed on an aged account that has been transacting large amounts of cash, then there is a guarantee of success in cashing out.
But if an account is new, then it is not likely that the vendor will load funds since they will be put on hold and experience a chargeback in a matter of time without even having a chance to withdraw.
For those aware of the carding vice, the name Garlito is popular in inner circles since he is a very reputable vendor who has operated in most major darknet markets such as AlphaBay, Dream Market, and Hansa.
He offers semi-clean and dirty transfers to PayPal accounts but does not deal with persons from specific countries.
DarkWebNews established that Garlito uses the same names on the darknet markets in which he operates. What’s more is that the listing of his services is the same from one market to the other. This is not uncommon among darknet market vendors.
However, some customers seeking the services of Garlito from the banned countries in Garlito’s list will not mention a nation but rather place an order directly.
It does work most of the time since not only Garlito, but most of these vendors care more about getting more business.
PayPal’s Efforts to Prevent Fraud
But one needs to ensure they read the agreement before opening an account as some issues that are dealt with may not be addressed by PayPal.
Among the critical ways that PayPal protects its users from scammers is through holding on to payments for a specific period.
This can be 24 hours, a week or even 21 days. It just depends on the type of transfer and the nature of the services offered.
The essence of holding payments is to ensure that the buyer receives the goods or to verify the source of payments.
Since there are a variety of methods in which carders drain accounts, it is essential for money transfer companies to take precautions to protect their customers from cybercriminals.
To restore the account, the negative balance will have to be cleared. Failure to do so will result in a ban from using PayPal for good, although most carders don’t mind this part because they have acquired the account to use for illegal trade in someone else’s name.
And even if it were, then the only option would be to dump the account and acquire a new one under a different name. If one opens a new account with the same name, then it will be closed and the user will receive an email from the company requesting him/her to sort the limitations on the other accounts.
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