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> Fraud and abuse prevention is a huge part of what PayPal > does Interview with Max Levchin in "Founders at Work" is a good read in this context. After long p
by rimantas 16y ago
> Fraud and abuse prevention is a huge part of what PayPal
> does
Interview with Max Levchin in "Founders at Work" is a good read in this context. After long part about fraud and prevention of it:
Linvgston: So is PayPal in a sense a security company?
Levchin: I think a good way to describe PayPal is: a security company
pretending to be a financial services company.<…>
So the company's core expertise, by definition, has to be in this
ability to judge risk<…>.
Livingston: What did you do that your competitors couldn't?
Levchin: The really complicated part is figuring out the risk.
- michaelbuckbee 16y agoAgreed completely, I'd heard a separate interview with Max Levchin where I believe he quoted the amount of money that PayPal lost at around $150 million (IIRC). That was their "learning money" to figure out how to handle fraud. Seeing as how Mr. Levchin has actually invested in WePay I'm assuming that they are have some strategy for fraud prevention.