PayPal has begun notifying a small variety of prospects a couple of vital cybersecurity incident wherein their personally identifiable data (PII) was uncovered for practically six months attributable to a software program error in its PayPal Working Capital (PPWC) mortgage software.
The publicity, which affected enterprise contact particulars mixed with extremely delicate private information, lasted from July 1, 2025, to December 13, 2025.
PayPal found the problem on December 12, 2025, and instantly rolled again the defective code change the next day.
In keeping with the official breach notification letters despatched to affected customers, the compromised data included:
- Identify
- Electronic mail tackle
- Cellphone quantity
- Enterprise tackle
- Social Safety quantity (SSN)
- Date of delivery
PayPal emphasised that the breach stemmed from an error within the PPWC mortgage software course of, a service designed to supply small companies with fast financing choices primarily based on their PayPal transaction historical past.
The corporate said it has “not delayed this notification because of any legislation enforcement investigation.”PayPal’s Response and Remediation
Upon discovery, PayPal:
- Terminated unauthorized entry and rolled again the problematic code.
- Reset passwords for all affected accounts (customers will probably be prompted to create a brand new password on subsequent login if not already completed).
- Issued refunds to the few prospects who skilled unauthorized transactions.
- Carried out enhanced safety controls.
As well as, PayPal is providing two years of complimentary three-bureau credit score monitoring and id restoration companies via Equifax without charge to affected prospects. Enrollment should be accomplished by June 30, 2026.
What Affected Prospects Ought to DoPayPal urges prospects to:
- Overview account statements, transaction historical past, and free credit score studies for suspicious exercise.
- Enroll within the free Equifax monitoring companies (directions are included within the notification letter).
- Stay vigilant towards phishing makes an attempt, PayPal won’t ever ask for passwords, one-time codes, or authentication components through electronic mail, cellphone, or textual content.
- Observe normal finest practices: use distinctive passwords, allow multi-factor authentication, and keep away from clicking suspicious hyperlinks.
The corporate added: “We take the safety of your data very critically, and we sincerely remorse any inconvenience that this matter has brought about you.”Context and Broader Implications
Whereas the variety of affected prospects has not been publicly disclosed, PayPal described it as “a small quantity.”
This incident is unrelated to earlier PayPal breaches, together with the 2022 credential-stuffing assault that impacted roughly 35,000 accounts.
Safety consultants be aware that extended publicity of SSNs and dates of delivery considerably raises the danger of id theft and fraud, making the two-year credit score monitoring supply notably necessary.
Prospects who obtained the notification letter ought to act promptly. For extra data, go to PayPal’s Assist & Contact part or the Equifax enrollment web page referenced within the letter.
PayPal has not but issued a public press launch past the client notifications, and the corporate didn’t instantly reply to requests for extra remark.
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