PayPal crisis: Billion dollar breakdown causes excitement among retailers!

PayPal crisis: Billion dollar breakdown causes excitement among retailers!

Paypal apologizes for a significant security breach that caused uncertainty among users and massive financial impact. The incident, which has already caused a massive drop in legitimate transactions, occurred when Paypal's security systems failed, making it impossible to detect fraudulent direct debits. This resulted in several banks in Germany stopping direct debits worth tens of billions, while Austrian banks were not affected. Affected traders had to struggle with the loss of income because they were unable to access their money or were only able to do so with a delay due to the aforementioned blockage. Loud vienna.at The total number of fraudulent direct debits is over one billion euros, while other registrations are in the three-digit million range.

The reversal of affected transactions is carried out comprehensively, with Paypal and financial institutions working closely together to help merchants get their money as quickly as possible. A spokesman for the German Savings Bank Association expressed confidence that all cases could be processed by the middle of next week. Payment transactions have returned to normal since Tuesday, but are subject to intensive monitoring as many transactions have to be processed manually.

Consumer protection and security

Consumer advocates criticized Paypal because many users were unsettled, particularly by emails informing them about insufficient account funds and possible processing fees. The consumer advice center will consider legal action if unauthorized fees are charged. It is also recommended to regularly check account transactions for unauthorized debits. Many consumers are protected by the current SEPA regulations, which allow chargebacks up to ten years later.

The Swabian Online portal emphasizes that users should be particularly careful to avoid phishing attacks. Criminals could exploit the uncertainty by sending fake emails or calling as Paypal employees. Real Paypal messages are tied to a personal address and transaction details and come from the address [email protected].

Alternative payment methods and recommendations

In light of the incident, experts advise considering alternative payment methods. Options include credit cards, Apple Pay and Google Pay as well as the European service Wero, which, however, has only a limited distribution. The Federal Office for Information Security (BSI) has also recommended regularly changing passwords and activating two-factor authentication to protect accounts from unauthorized access. Loud bsi.bund.de Consumers are more likely to be protected by a variety of payment methods when shopping online, as long as they take appropriate precautions and inform themselves about the advantages and disadvantages of each payment method.