1. Unauthorised transactions here on the decline: PayPal
SINGAPORE — Following media reports about a spate of fraudulent PayPal transactions in the last
two months, the electronic payments giant has told its users in Singapore that fraud cases have
actually fallen in the past year.
It also reassured users that it has its own multi-factor authentication system, amid calls to
implement an added layer of security called two-factor authentication (2FA) for PayPal accounts akin
to what banks have implemented.
In the email sent last Wednesday, PayPal reiterated that its platform “has not been hacked or
compromised in any way”. “In fact, our own internal data shows a declining trend in unauthorised
transactions over the past 12 months for our Singapore users,” it said.
Client : PayPal Country : Singapore
Publication : TODAY Section : Singapore
Date : 10 June 2013 Page : -
Topic : Unauthorised transactions here on the
decline: PayPal
Circulation : 500, 000
Link : http://www.todayonline.com/singapore/unauthorised-transactions-here-decline-
paypal

2. PayPal added that it uses “hundreds of independent factors”, including location, IP addresses,
context of the transaction and behaviour patterns “to predict and stop potential fraud before it
occurs”.
When contacted, however, PayPal Singapore declined to provide figures. Based on numbers
from 2011, the company has over 600,000 users here.
In response to TODAY’s queries, PayPal Singapore noted that its multi-factor authentication is
“more convenient” for consumers, as 2FA systems require users to enter a one-time password to
complete a transaction, which was “cumbersome” and “inhibits online commerce”.
“Our systems can quickly look at different combinations of the variables noted above to achieve
an understanding of the risk of any request that may be made by a customer,” it added.
The company also reiterated that its anti-fraud technology alerts a user of any unusual activity
and asks if the user wants to proceed.
The user would also have been alerted of any fraudulent transaction as the company sends
notification emails with every transaction.
This system is not always effective — in at least one recently-reported case, the user was not
notified of any unusual transaction by PayPal.
But businessman Russel Wong said that he was alerted by PayPal when he tried to make a
S$3,000 payment to someone in Brazil.
“It told me it would hold the payment while it verified the transaction, so the system should be
quite safe. I’m also quite reassured by the 60-day money back guarantee,” said Mr Wong, who uses
PayPal for both business and personal transactions.