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PayPal fined by New York for cybersecurity failures

  • PayPal will pay a $2 million civil fine for cybersecurity failures that exposed customers' Social Security numbers in late 2022, according to New York state's Department of Financial Services.
  • Adrienne Harris, New York's financial services superintendent, stated that PayPal failed to use qualified staff for cybersecurity functions.
  • PayPal discovered the issue after a security analyst read an online message on December 6, 2022, indicating a security exploit.
  • The fine was imposed for violating the financial services department's cybersecurity regulation adopted in 2017, and PayPal has since implemented multifactor authentication.
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