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PayPal announced a data breach due to a coding error in its Working Capital loan app, which exposed customers’ personal information for about six months, from July 1, 2025, to December 13, 2025.
The company found unauthorized exposure on December 12, 2025, and informed affected customers in a letter dated February 10, 2026, from its headquarters in San Jose, California.
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PayPal Data Breach
The types of personal information possibly compromised include full name, email address, phone number, business address, Social Security number (SSN), and date of birth. PayPal acknowledged that a few customers faced unauthorized transactions and has refunded them.
Forbes reported that the company is providing two years of free credit monitoring and identity restoration services through Equifax Complete™ Premier, which includes $1,000,000 in identity theft insurance.
Affected users must enroll via Equifax using their provided activation code before the July 31, 2026, deadline.
Affected customers should check their account transaction history, monitor their credit reports at annualcreditreport.com, and think about placing a free fraud alert or credit freeze with Equifax, Experian, and TransUnion.
A spokesperson for PayPal stated that, “When there is a potential exposure of customer information, PayPal is obligated to notify the affected customers. In this situation, PayPal’s systems were not compromised. Therefore, we reached out to approximately 100 customers who were potentially impacted to raise awareness about this matter.”
