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From that LA Times article:
"Citing high instances of fraud, the popular online payment service said Wednesday that it would soon stop doing business with Web merchants that sell adult-themed merchandise"
"PayPal drew the ire of some in the adult entertainment industry, who said the service’s move amounted to morality policing by PayPal owner EBay Inc., the widely used online auction house. The PayPal announcement came just days after Wal-Mart Stores Inc. stopped selling three racy magazines – FHM, Maxim and Stuff – because they made some shoppers uncomfortable."
Sounds like they used "fraud" as their cover. Most "fraud" took place back in the mid to late 1990's It was called dialers and was truly a grand ripoff in the hundreds of millions dollars. What "fraud" was Paypal citing back in 2003?
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