Summary
European banks experienced unauthorized payments from PayPal accounts, causing disruptions in financial transactions. PayPal identified the issue as a temporary service problem and worked with banks to resolve it, ensuring normal operations resumed.
Key Facts
- Unauthorized direct debits affected European banks from PayPal accounts.
- The German Savings Banks Association reported the issue involved payments up to 10 billion euros.
- PayPal's fraud-checking system failed, leading to suspicious transactions.
- PayPal and banks paused these transactions on Monday.
- PayPal stated they identified the cause and are working to update all accounts.
- The issue significantly affected payment transactions across Europe, especially in Germany.
- Supervisory authorities have been informed about the incidents.
- Shares for PayPal decreased by 1.9% following the news.
