Paypal never learned how to deal with fraud or security. They simply avoid taking on the responsibility. Paypal decided long ago that it is far more profitable to refund the customer's money 100% of the time than it is to fight credit card fraud. There are pluses and minuses to this system. On one hand, honest buyers can be virtually guaranteed that they won't get ripped off. On the other hand, honest sellers can look forward to having some of their merchandise stolen at some point in the future.