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PayPal Says Loan-App Bug Exposed Customer Data for Six Months

The company attributes the leak to a coding error in its small-business loan program, saying it contained the issue in December.

Overview

  • PayPal notified approximately 100 PayPal Working Capital customers of potential exposure, while declining to publish a definitive affected count.
  • Exposed information included names, email addresses, phone numbers, business addresses, Social Security numbers, and dates of birth.
  • The exposure occurred from July 1 to December 12–13, 2025; PayPal says it rolled back the faulty code and terminated unauthorized access after discovery.
  • A few customers saw unauthorized transactions that have been refunded, impacted passwords were reset, and two years of three‑bureau Equifax monitoring is offered with enrollment open until June 30, 2026.
  • Reporting highlights a discrepancy between PayPal’s statement that its systems were not compromised and notices referencing terminated unauthorized access, and the incident follows a 2022 credential‑stuffing case and a 2025 New York settlement.