PayPal freezes out British user in 'terror' list snafu

PayPal has frozen Brit Mohammed Hassan's account and banned him from using the service if he refuses to fax the company a raft of personal information.

The online payments service told him his name is "similar to or a match to" a name on the US government's anti-terror assets freezing list.

"Access to your PayPal account has been denied because your name is similar to or a match to an entry on the Office of Foreign Assets Control Specially Designated Nationals (SDN) list. We are required to further verify your identity."

We contacted PayPal with a series of questions. They confirmed that in Mohammed Hassan's case, his account will be closed unless he faxes his passport to them - action he told us he is not willing to take on priniciple. Unlike banks, PayPal does not require identity verification to set up an account.

Mohammed works for the UK government, in a job which requires security clearance. He said: "I am not a terrorist or a criminal. How the hell can PayPal link me to that name on the SDN list, is it because my name is Arabic? Or is it because PayPal are just plain stupid?"