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PayPal App Code Error Leaked Personal Info

A software error in PayPal's loan app exposed sensitive data for nearly six months; affected users get two years of free credit monitoring from Equifax.

  • On December 12, 2025, PayPal discovered that customer data had been exposed since July 1, 2025, and reversed the code change one day later, blocking attackers' access.
  • A coding change in the PayPal Working Capital loan app introduced an error that leaked small-business borrowers' personal information.
  • About 100 customers were notified and some saw unauthorized transactions, with exposed data including names, Social Security numbers, dates of birth, email addresses, phone numbers and business addresses.
  • It reset passwords for impacted accounts and requires affected users to enroll by June 30, 2026 for two years of free three-bureau credit monitoring and identity restoration through Equifax.
  • Previously, PayPal had faced a large 2022 breach affecting 35,000 accounts and a $2,000,000 settlement with New York State in January 2025; BleepingComputer sought comment but received no immediate response from a PayPal spokesperson.
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Due to a programming error in a credit application, PayPal has disclosed sensitive customer data for almost half a year. Among other things, social security numbers of small companies are affected. PayPal has announced a data breakdown that affects customers of its credit platform PayPal Working Capital (PPWC). The service is aimed at small enterprises that need short-term capital. An error in the code of the application ensured that personal an…

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BleepingComputer broke the news in on Friday, February 20, 2026.
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