Just when we thought that the world’s most popular online money transfer platform was more expensive but safer than anywhere else we put our hard earned money, we find out about yet another data breach.
The global e-commerce platform PayPal disclosed a data breach that may have compromised roughly 1.6 million customer accounts.
Be honest folks, you’ve been scared to go into cryptocurrency for the fear of those massive breaches of ICOs, wallets, and personal accounts. You never worried too much about PayPal, well, that time is over.
Turns out, the breach may not be as bad as it looks, or maybe that’s just what PayPal wants us to believe.
PayPal recently acquired a cloud-based multi-channel bill payment process and receivables management provider called TIO Network for $233 Million. The description of the company, in and of itself, is very impressive. It serves the largest telecom, wireless, cable and utility bill issuers in North America.
Whichever online systems you use to pay you gas or energy bill, chances are TIO Network either run it or are connected somehow.
The company actually has over 60,000 utility and bill payment kiosks across North America.
- hasn’t disclosed what type of information was stolen, but we can all guess that it was payment details the hint being that they are a payment processing company. No cyber detective work needed here.
The bad news is that anyone could be responsible for this. Earlier this month, the US government handed a 14-year prison charge to a Russian hacker whose hacking group literally withdrew $9.4 million from 2,100 ATMs in 280 cities worldwide - in less than 12 hours. Imagine if they had control over 30,000 bill kiosks - the world would literally have to shut down for a couple of days.
The better news is that the data breach only targeted TIO systems and not PayPal accounts. PayPal discovered evidence of unauthorized access to the company’s networks and the breach of millions of customer payment information.
According to Paypal, however, their platform is “not impacted in any way, as the TIO systems are completely separate from the PayPal network, and PayPal's customers' data remains secure.” Paypal was actually in the middle of a company-wide internal investigation trying to identify any vulnerability in its payment systems.
So it was actually a great move to announce the data breach. It’s so easy to lose customer trust and brand loyalty and showing your vulnerabilities actually helps clients trust you more. PayPal also hired some third-party cybersecurity experts to help them investigate the breach.
The funny thing is that PayPal is helping Experian, the consumer credit reporting agency that suffered a massive data breach this year, to provide free credit monitoring services for those affected by identity theft. So PayPal gets to be the good guy here, they are really doing their job!
Another really smart move is that TIO closed down its entire service temporary until they get all the information they need on the breach and secure their data.
Not only did they announce the breach right away. They also hired experts and closed down all their operations in order to make sure that all of their customer’s data is protected. With such huge national clients, it’s no surprise that TIO and PayPal are taking this breach as seriously as they possibly can.