PayPal App Code Error Exposes Personal Information

PayPal App Code Error Exposes Personal Information 🚨

PayPal has notified about 100 customers that their personal information was exposed online during a code change gone awry. In a few cases, people noticed unauthorized transactions on their accounts. Fortunately, all affected customers have been fully refunded. A PayPal spokesperson stated, “When there is a potential exposure of customer information, PayPal is required to notify affected customers.”

According to a data breach notification sent to affected customers, the unauthorized activity was spotted on December 12, 2025. This incident was due to a coding error in the PayPal Working Capital loan application, which inadvertently leaked customers’ business contact information, including names, Social Security numbers, dates of birth, email addresses, phone numbers, and business addresses, between July 1, 2025, and December 13, 2025. PayPal has since rolled back the code change responsible for this error.

As soon as the leak and fraudulent transactions were noticed, PayPal began an investigation, blocked unauthorized access, reset passwords of affected accounts, and required customers to set a new password the next time they log in. “A few customers experienced unauthorized transactions on their accounts, and PayPal has issued refunds to these customers,” according to the notification. The company is also offering affected customers two years of free credit monitoring.

This data incident follows an earlier and much worse PayPal breach that occurred in December 2022, where unauthorized parties accessed customers’ accounts using valid login credentials, exposing personal information of 35,000 PayPal users.

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