PayPal only bought bill payment processor TIO Networks For £177m in July but has suspended operations
PayPal-owned payment processing provider TIO Networks says the personal details of as many as 1.6 million people could have been compromised.
The company suspended operations in November while PayPal, which only bought TIO for $238 million back in July, investigated the vulnerabilities of the platform.
It stressed that no PayPal data has been compromised as its systems are completely separate from TIOs and that it had started contacting those who may have been affected.
PayPal TIO breach
“This ongoing investigation has identified evidence of unauthorised access to TIO’s network, including locations that stored personal information of some of TIO’s customers and customers of TIO billers,” said PayPal. “As a result, PayPal is taking steps to protect affected customers.
“TIO has also begun working with the companies it services to notify potentially affected individuals, and PayPal is working with a consumer credit reporting agency to provide free credit monitoring memberships. Individuals who are affected will be contacted directly and receive instructions to sign up for monitoring.”
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PayPal said TIO systems would not be restored until it could be confident about their security and could not give a firm deadline.
TIO’s cloud-based bill payment processing services handled more than 60 million transactions last year and its technology works both online and in physical locations. TIO runs 60,000 payment kiosks across North America.