It is their job. They assume the risk, they have a responsibility to their shareholders and their legitimate customers and they have a regulatory responsibility to police fraud as best they can.
If paypal was letting chargebacks run out of control because they refused to police fraud they would have to raise the fee percentage to something like 10%, assuming they could even continue to have any sort of relationship with credit card processors. If that happened their customers would be screaming bloody murder and demanding they do something about fraud to keep things under control.
Not only that, but they would be shut down in just about every country in the world for helping to support terrorism and organized crime by failing at basic do diligence in stopping money laundering et al.
If paypal was letting chargebacks run out of control because they refused to police fraud they would have to raise the fee percentage to something like 10%, assuming they could even continue to have any sort of relationship with credit card processors. If that happened their customers would be screaming bloody murder and demanding they do something about fraud to keep things under control.
Not only that, but they would be shut down in just about every country in the world for helping to support terrorism and organized crime by failing at basic do diligence in stopping money laundering et al.