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PayPal's TIO Networks breached; PII of 1.6 million users affected
05 December 2017, 10:49 | Lucia Cruz
Source TIO Networks
PayPal says that TIO has started to notify potentially affected companies and individuals. TIO Networks operates under PayPal's umbrella but acts as a separate company, processing over $7 billion in consumer bill payments in 2016, supporting roughly 16 million customer bill pay accounts.
Now it has been revealed that personally identifiable information for approximately 1.6 million customers of TIO Networks - a payment processor acquired by PayPal barely five months ago - may have been compromised. A PayPal spokesman said that information possibly included customer names, addresses, Social Security numbers and login credentials.
PayPal announced on Friday that a $238 million company it purchased in July has been chewed through by the hacker moths. While PayPal said it has not found actual proof that data was stolen, it found enough evidence to treat the vulnerability as a data breach.
Back in November, PayPal started investigating its newly-acquired subsidiary TIO Networks' servers for security vulnerabilities and chose to suspend the latter's operations after TIO's servers were found wanting in terms of information security standards practiced by PayPal itself. It is also working with consumer credit reporting agency Experian to provide free credit monitoring memberships. "We will continue to communicate important updates to customers". PayPal said it was looking into the vulnerabilities at TIO and discovered that users' information may have been compromised. TIO runs 60,000 payment kiosks across North America. We sincerely apologise for any inconvenience caused to you by the disruption of TIO's service, ' said TIO Networks in a statement.
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