Data breach at PayPal subsidiary compromises personal information of 1.6m customers

TIO Networks, a popular Canadian digital payments service recently acquired by PayPal for $238m, suffered a major data breach recently that compromised personal details of 1.6 million customers.

PayPal recently suspended TIO Networks' operations as it found the latter's platform not compatible with its information security standards.

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

During the course of the investigation, PayPal also uncovered a major data breach of TIO Networks which compromised personal information of as many as 1.6 million customers. TIO Networks operates over 60,000 bill payment kiosks across North America and has over 14 million registered users who use its services to make bill payments for wireless connections, cable, utilities, and other kinds of purchases.

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'A review of TIO’s network has identified a potential compromise of personally identifiable information for approximately 1.6 million customers. The PayPal platform is not impacted in any way, as the TIO systems are completely separate from the PayPal network, and PayPal’s customers’ data remains secure,' said PayPal in a statement.

'PayPal suspended the operations of TIO to protect customer data as part of an ongoing investigation of security vulnerabilities of the TIO platform. 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.

PayPal has also promised to offer free credit monitoring memberships to all affected customers of TIO Networks, aside from working with all companies that the latter serves to identify and notify affected customers.

'At this point, TIO cannot provide a timeline for restoring bill pay services and continues to recommend that you contact your biller to identify alternative ways to pay your bills. We sincerely apologise for any inconvenience caused to you by the disruption of TIO's service,' said TIO Networks in a statement.