Data breach at PayPal subsidiary compromises personal information of 1.6m customers


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In a statement, the company said that unknown attackers were able to gain access to "locations that stored personal information of some of TIO's customers and customers of TIO billers".

PayPal has now said it has "identified a potential compromise of personally identifiable information for approximately 1.6 million customers". The Vancouver, Canada-based company's customer base is mostly in the US.

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Back in November, PayPal started investigating its newly-acquired subsidiary TIO Networks' servers for security vulnerabilities and made a decision to suspend the latter's operations after TIO's servers were found wanting in terms of information security standards practiced by PayPal itself. "As a result, PayPal is taking steps to protect affected customers".

Following PayPal's purchase of the Canadian company - which runs a network of over 60,000 utility and bills payment kiosks across North America - it found evidence of unauthorized access to TIO's networks and hence suspended TIO's operations. The hope was it could eventually introduce TIO's cash-based users to more of PayPal's digital services, helping the company bring in more active users to its base of almost 200 million customers.

PayPal paid around $238 million to acquire TIO in July, with the goal of reaching more consumers who don't have traditional financial accounts.

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Any affected customers will be notified by TIO and receive instructions on how to register for one year of complimentary credit monitoring.

"At this point, TIO can not provide a timeline for restoring bill payment services, and continues to recommend that you contact your biller to identify alternative ways to pay your bills", TIO Networks says.

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