When you verify your identity with paypal, the platform is able to confirm that you are who you say you are, thereby preventing others from using your information to perform fraudulent activities.

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Paypal Identity Verification - Secure Your Account
reviewsteams.com

Paypal Identity Verification - Secure Your Account

Paypal Identity Verification Paypal requires identity verification for all its users. Verification can be done by uploading a photo id & proof of address.