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PayPal Loan-App Error Exposed SSNs for Six Months, About 100 Customers Notified

Some impacted accounts saw unauthorized charges that the company says it has refunded.

Overview

  • A coding change in the PayPal Working Capital loan application on July 1, 2025 left data exposed until December 12–13, 2025, when access was detected and cut off.
  • Exposed details included names, email addresses, phone numbers, dates of birth, business addresses and Social Security numbers.
  • PayPal says roughly 100 customers were affected, the faulty code was rolled back, and passwords for impacted accounts were reset.
  • A few customers reported unauthorized transactions tied to the incident, and PayPal states it has issued refunds to those users.
  • Notification letters dated February 10, 2026 offer two years of Equifax three-bureau credit monitoring with enrollment open through June 30, 2026, as media note conflicting company statements about whether its systems were compromised and filings were submitted in Massachusetts.