PayPal looses money on fraud (charge-back fraud mostly I assume). They had to pioneer fraud prediction&#x2F;detection tech to even survive, let alone be profitable.<p>Actually after Peter Thiel left PayPal, he founded Palantir, which is strongly inspired by their fraud tech. Just more general.<p>Sure - in an ideal world the law enforcement would just catch all the bad guys and manage to get the money back. But when that doesn&#x27;t happen a business has to account for it.