also paypals anti-fraud department is extremely good, stolen accounts are almost always flagged even if they use an IP in the same city.
PayPal's anti-fraud measures are decent and I relied on them as an initial filter. However, I caught many fraudulent orders that PayPal missed. Their system is optimized for physical goods. They do automatic chargebacks on digital goods disputes, so they have little incentive to improve there.
Exactly. some bitcoin people act as if PP has some kind of personal vendetta (besides competition) against bitcoin when that is not true at all. The fact of the matter is PP does not support digital goods, even on eBay. I have sold numerous digital goods and have been scammed on a few of them, from legitimate eBay users wnho even eventually got out of my negative feedback.
PP simply is not an advanced company, they keep it very simple and are behind the times. Things are starting to sell digitially and they need a lot more protection there. Adequate proof (beyond a reasonable doubt using logic) that would stand in a courtroom does not stand with PP. PP's definition of proof is a bit different and very limited.