European banks have seen widespread unauthorized direct debits from PayPal accounts, the German Savings Banks Association (DSGV) says. The German newspaper Sueddeutsche Zeitung (SZ) reports that payments worth in the region of 10 billion euros (£8.6bn) have been blocked due to PayPal's fraud-checking system failure. Payments were paused when lenders reported millions of suspicious direct debits from PayPal.
The DSGV confirmed incidents involving unauthorized direct debits initiated by PayPal against various credit institutions. The BBC has approached PayPal for comment.
PayPal has stated that certain transactions from their banking partners and their customers were affected by a temporary service interruption. A spokesperson mentioned they quickly identified the cause and were in close contact with banking partners to ensure all accounts are updated. The DSGV noted that PayPal acknowledged the disruptions and assured that the problem was resolved, with normal payment transactions now resuming.
These situations significantly impacted payment transactions across Europe, particularly in Germany, and supervisory authorities have also been informed of the incidents at PayPal. The company aims to filter out scams through its security system, notably dealing with fake direct debits set up by criminals, often by tricking individuals into providing their details under false pretenses.
According to SZ, PayPal's filtering system faltered on Monday, allowing unchecked direct debits to be processed. Following these revelations, shares in PayPal fell by 1.9%.
The DSGV confirmed incidents involving unauthorized direct debits initiated by PayPal against various credit institutions. The BBC has approached PayPal for comment.
PayPal has stated that certain transactions from their banking partners and their customers were affected by a temporary service interruption. A spokesperson mentioned they quickly identified the cause and were in close contact with banking partners to ensure all accounts are updated. The DSGV noted that PayPal acknowledged the disruptions and assured that the problem was resolved, with normal payment transactions now resuming.
These situations significantly impacted payment transactions across Europe, particularly in Germany, and supervisory authorities have also been informed of the incidents at PayPal. The company aims to filter out scams through its security system, notably dealing with fake direct debits set up by criminals, often by tricking individuals into providing their details under false pretenses.
According to SZ, PayPal's filtering system faltered on Monday, allowing unchecked direct debits to be processed. Following these revelations, shares in PayPal fell by 1.9%.
