PayPal confirms data breach, users lose money
Online payment giant PayPal has confirmed that a recent data breach affected a number of its customers, with some users reporting unauthorised transactions and theft of funds.
According to the company, the breach was linked to a software flaw in its PayPal Working Capital (PPWC) loan application, which provides financing to small businesses. The vulnerability existed between July 1 and December 13, 2025, allowing temporary unauthorised access to customer information.
PayPal said around 100 accounts were impacted. Exposed data included names, email addresses, phone numbers, business addresses, dates of birth, and Social Security numbers, raising potential risks of identity theft.
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The company confirmed that unauthorised transactions occurred on some accounts, but refunds have been issued.
In response, PayPal has:
Reset passwords for affected users.
Corrected the software flaw that caused the breach.
Offered two years of free credit monitoring and identity restoration services to impacted customers.
PayPal urged users to monitor account activity, check credit reports, and be alert for phishing attempts, emphasizing that the company will never ask for passwords or one-time codes through unsolicited messages.
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Cybersecurity experts say the incident highlights the continuing challenges faced by financial technology companies in protecting sensitive data, stressing the importance of vigilance for both providers and users.
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