Strange, but true.

Proof: http://imgur.com/a/RnpRm

Or, you can try it yourself:

Warning: Sending $1 to a charity could get your account shut down. Seriously. See below:

a) Find someone you can send a small amount of money to via Paypal. Doesn't matter who. I sent $1 to [REMOVED] (can't post email addresses here...change the "at" to @ )

b) In the "Add a note" (new Paypal UI) or "Subject" (old Paypal UI), area, put something random but make sure the words "James Kang" are in it.

c) Send the transaction.

Here's what will happen.

1) The transaction will be held, immediately, with a mysterious status that it needs to be reviewed.

2) Roughly 24 hours later you'll get a message from Paypal that your account will be shut down until you provide a date of birth for "JAMES KANG".

I can't believe Paypal implemented something this stupid and simplistic. Even the US "No Fly List" is smart enough not to flag someone based solely on a first and last name.

I suspect the part where they threaten to shut down your account unless you share private information about a third party is illegal.