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PayPal Data Breach Confirmed—Money Was Stolen, Passwords Now Reset

Summary by Tech Radar
A bug in the code of a PayPal app exposed PII for numerous people, and some even (briefly) lost their money.

6 Articles

PayPal notified its customers of a security incident affecting its lending service, PayPal Working Capital. A code flaw, active from July to December 2025, exposed sensitive information such as social security numbers. Although few customers were affected, unauthorized transactions were found and refunded. PayPal corrected the flaw and enhanced account security.

PayPal warns some of its customers of a security incident related to its loan service. A defective code change exposed personal information for almost six months last year. The company claims that its systems were not "compromised", but still recognizes unauthorized access and some fraudulent transactions.

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Forbes broke the news in United States on Sunday, February 22, 2026.
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