PayPal’s TIO Networks suffers data breach
Payment processing company PayPal (PYPL) has put TIO Networks’ operations on hold after a cybersecurity breach was discovered on the TIO platform. An ongoing internal investigation indicates that the breach might have led to the theft of 1.6 million TIO customers’ personal information.
PayPal, which has separated from eBay (EBAY), completed the acquisition of Canada-based bill payment processor TIO Networks in July 2017, in its aim to expand in the North American (SPY) bill payment market and capture unbanked and underbanked customers. TIO Networks serves customers who do not have bank accounts. PayPal currently has around 218 million active account holders.
PayPal seeks to protect customers
Notably, PayPal’s customers remained unaffected by the data breach, as TIO systems operate separately from the PayPal network. Nevertheless, PayPal is taking steps to protect affected TIO customers, collaborating with credit reporting agency Experian to provide free credit monitoring for them.
TIO’s data breach incident harks back to the Yahoo-Verizon (VZ) deal, which was reduced by $350 million following the disclosure of two data breaches by Yahoo. Ride-hailing service provider Uber was also recently hacked, resulting in about 57 million customers’ and drivers’ personal information being stolen.