PayPal Shares Customer Information With Company Led by UltimateBet Coverup Suspect
John Mehaffey of USPoker.com discovered that PayPal shares customer information with Iovation, an online fraud prevention company headed by CEO Greg Pierson.
In May, Travis Makar, an UltimateBet whistle-blower, released these audiotapes that implicate UltimateBet founder and CEO Pierson along with Russ Hamilton in the cover-up of the infamous cheating scandal.
According to PayPal's private policy, Iovation is on a list of "non-exclusive examples of the actual third parties to whom we currently disclose your account information."
PayPal uses Iovation to "retrieve risk information regarding the IP and device from which you are accessing PayPal, research and testing as to appropriateness of new products and services."
Ultimate Poker, the first legal online poker site in the United States, originally partnered with Iovation for player verification services in Nevada, but later cut ties with the company when the Ultimate Bet tapes surfaced. The company released the following statement:
“As of late Thursday night, May 9th, Ultimate Poker discontinued the use of all services from Iovation. We understand that there were concerns among some of our customers, we hope this makes our players feel more comfortable."
PayPal has not commented at this time.