PayPal's TIO Networks Says Data Breach Impacts 1.6m Customers


The third-party vendor on question is TIO Networks' "Global Express", which was recently acquired by PayPal.

A review of TIO's network has identified a potential compromise of personally identifiable information for approximately 1.6 million customers.

"This suspension of services is a result of PayPal's discovery of security vulnerabilities on the TIO platform and issues with TIO's data security programme that do not adhere to PayPal's information security standards", said PayPal in November.

Among customer information possibly exposed, according to a PayPal spokesman, were names, addresses, bank account details, Social Security numbers and details of login information used to pay bills. Duke Energy customers make up almost a quarter of the 1.6 million TIO Network customers potentially compromised.

The operations of TIO were suspended by PayPal last month in order to safeguard customer data while a probe looked into the former's security weaknesses.

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PayPal said TIO systems would not be restored until it could be confident about their security and could not give a firm deadline.

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

The company is now in the process of notifying its clients that may have been affected by this breach. PayPal bought the Canadian payment processing company, which has over 60,000 utility and bills payment kiosks across North America, for $238m (£177m) in cash in July.

In the meantime The company has advised users to find alternative ways to pay their bills and also Offered customers free credit checks and identity theft insurance as part of their reaction to the problem.