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How Fraudsters and Money Launderers Exploit Paystack Do Fraudsters use Paystack? Yes, like virtually every major payment processor in the world, Paystack has been targeted and used by bad actors to process illicit funds and commit financial fraud. However, it is crucial to distinguish between Paystack knowingly engaging in money laundering (which it does not) and fraudsters exploiting Paystack's infrastructure to wash dirty money or collect proceeds from scams. 1. How Fraudsters and Money Launderers Exploit Paystack Paystack is a payment switching and processing infrastructure. Bad actors frequently target payment gateways to layer funds, disguise origins, or collect proceeds from illegal schemes: Ponzi Schemes and Fake Investment Platforms: Fraudulent platforms often attempt to integrate Paystack as their checkout gateway. In 2021, a widely reported scam (operating under the name St. Michael Foundation ) used fake business credentials to bypass Paystack's onboarding c...