PayPal Data Breach Affects 100 Customers via Software Bug

PayPal disclosed a data breach affecting a small number of customers, caused by a software bug in its Working Capital loan application, which exposed sensitive personal information from July 1 to December 13, 2025.

The company notified approximately 100 impacted users after discovering the issue on December 12, 2025. The vulnerability stemmed from a coding error in the PayPal Working Capital application, a financing tool that provides cash advances to eligible small businesses based on their sales history. This error allowed unauthorized access to the platform, leading to the exposure of personally identifiable information, including names, email addresses, phone numbers, business addresses, Social Security numbers, and dates of birth.

PayPal stated that its broader systems remained secure and were not compromised. However, the breach enabled a limited number of unauthorized transactions on affected accounts. The company confirmed that all such transactions have been refunded, and it terminated the unauthorized access promptly upon detection. Affected customers' passwords were reset as a precautionary measure, and the faulty code change was rolled back the following day to...