Security & Fraud

PayPal’s TIO Network Breach Said To Impact 1.6M Customers

PayPal disclosed late last week that the personal information of around 1.6 million users may have been compromised at its TIO Networks unit, a company it acquired earlier in 2017.

According to a news report in The Wall Street Journal, in November PayPal suspended the operations of TIO Networks, which makes digital bill payment tools for companies and operates kiosks in retail stores. PayPal said it was looking into the vulnerabilities at TIO and discovered that users’ information may have been compromised.

A PayPal spokesman told the paper that the data that may have been impacted included names, addresses, bank account details, Social Security numbers and login information. How much of those details fell into the hands of cybercriminals depends on how many of TIO’s services the consumers used. Reportedly, one of TIO's services had all of the customer data exposed, and the payments company hasn’t yet found any evidence that any of the information was taken outside of TIO.

The New York State Department of Financial Services told The Journal that it is working with the company to “investigate and address issues related to cybersecurity vulnerabilities.”

The potential data hack at TIO comes a few months after Equifax announced a massive data breach that impacted 145.5 million consumers, including the credit card numbers of 209,000 people.

PayPal paid around $238 million to acquire TIO in July, with the goal of reaching more consumers who don’t have traditional financial accounts. For TIO consumers who were affected by the data breach, PayPal is offering free credit monitoring services via Experian.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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