If PayPal Can Mistake Good People for Scammers, Anyone Can
PayPal, with 2,000 staff and 50 PhD engineers, thought it was the best at spotting scams. But their system was making a big mistake: it was rejecting many good applicants who later proved they were genuine customers.
A small start-up showed them a simple trick: Good people leave digital footprints . Fraudsters hide .
If someone had no trace on the internet at all , that was the red flag .
When tested on 100,000 transactions, the results were clear: Completed in 3 days 17% more accurate than PayPal Revealed that thousands of people PayPal had turned away were actually trustworthy customers
The idea was so powerful that PayPal bought the start-up for $169 million .
The lesson? Even the biggest companies can get it wrong. Scammers are tricky — and sometimes the good people suffer, too. That’s why staying alert matters for everyone.
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