PayPal wants patent for system that scans newly-registered domains

Patent describes automated crawler and checkout simulator to spot fraud in newly-registered domains.

PayPal (NASDAQ: PYPL) has filed a patent application describing a method to proactively detect scam websites by automatically crawling newly registered domains and simulating checkout processes.

U.S. patent application 18/521,909 (pdf), titled Automated Domain Crawler and Checkout Simulator for Proactive and Real-time Scam Website Detection, describes a system designed to tackle online fraud at its earliest stages.

According to the application, PayPal’s system monitors newly registered domains to identify those that include checkout options. The technology then performs simulated checkout operations on these sites, mimicking a genuine user’s experience. This simulation specifically looks for domain redirections during checkout processes because this is a common tactic scammers use to conceal fraudulent activity.

If a redirection occurs, PayPal’s system checks the redirected domain against its database of known scam merchants and flagged accounts. Domains linked to previous fraudulent activities trigger a scam alert, allowing PayPal to promptly label and potentially block transactions from these websites.

PayPal notes that scammers often set up new, seemingly legitimate websites to mask their operations. By proactively identifying suspicious redirections and cross-referencing them against scam-related merchant accounts, the method allows it to significantly reduce the risk.

PayPal filed the application on November 28, 2023, and it was published today, May 29, 2025.