PayPal Admits Acquired Company TIO Networks Suffered Major Breach

PayPal Admits Acquired Company TIO Networks Suffered Major Breach

The leak apparently happened through TIO networks - a company that PayPal recently acquired.

PayPal paid around $238 million to acquire TIO in July, with the goal of reaching more consumers who don't have traditional financial accounts.

On Friday, a company that Duke Energy uses to process its customer's payments from walk-in locations announced the breach, which could affect about 1.6 million customers overall, WYFF reports.

The operations of TIO were suspended by PayPal last month in order to safeguard customer data while a probe looked into the former's security weaknesses. This ongoing investigation has identified evidence of unauthorized access to TIO's network, including locations that stored personal information of some of TIO's customers and customers of TIO billers, ' it added.

Back in November, PayPal started investigating its newly-acquired subsidiary TIO Networks' servers for security vulnerabilities and made a decision to suspend the latter's operations after TIO's servers were found wanting in terms of information security standards practiced by PayPal itself.

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As the European General Data Protection Regulation (GDPR) looms, the companies will be required to notify clients within 72 hours or they could risk heavy fines in Europe.

The company is now in the process of notifying its clients that may have been affected by this breach.

PayPal brought in "additional third-party cybersecurity expertise to review TIO's bill payment platform", TIO continued.

In the meantime The company has advised users to find alternative ways to pay their bills and also Offered customers free credit checks and identity theft insurance as part of their reaction to the problem.