PayPal Holdings, Inc. (Nasdaq: PYPL) announced that TIO Networks (TIO),
a publicly traded company PayPal acquired in July 2017, has suspended
operations to protect TIO’s customers. This suspension of services is a
result of PayPal’s discovery of security vulnerabilities on the TIO
platform and issues with TIO's data security program that do not adhere
to PayPal's information security standards. TIO is not integrated into
PayPal’s platform. The PayPal platform is not impacted by this situation
in any way and PayPal’s customers’ data remains secure.
Upon the recent discovery of this vulnerability on the TIO platform,
PayPal took action by initiating an internal investigation of TIO and
bringing in additional third-party cybersecurity expertise to review
TIO’s bill payment platform. A focus of the investigation will also
include TIO’s practices and representations prior to the acquisition.
While we apologize for any inconvenience this suspension of services may
cause, the security of TIO’s systems and the protection of TIO’s
customers are our highest priorities. We are working with the
appropriate authorities to safeguard TIO customers.
Our investigation is ongoing. We will communicate with TIO customers and
merchant partners directly as soon as we have more details. Customer
updates will also be posted at www.tio.com.
Fueled by a fundamental belief that having access to financial services
creates opportunity, PayPal (Nasdaq: PYPL) is committed to democratizing
financial services and empowering people and businesses to join and
thrive in the global economy. Our open digital payments platform gives
PayPal’s 218 million active account holders the confidence to connect
and transact in new and powerful ways, whether they are online, on a
mobile device, in an app, or in person. Through a combination of
technological innovation and strategic partnerships, PayPal creates
better ways to manage and move money, and offers choice and flexibility
when sending payments, paying or getting paid. Available in more than
200 markets around the world, the PayPal platform, including Braintree,
Venmo and Xoom, enables consumers and merchants to receive money in more
than 100 currencies, withdraw funds in 56 currencies and hold balances
in their PayPal accounts in 25 currencies. For more information on
PayPal, visit https://www.paypal.com/about.
For PayPal financial information, visit https://investor.paypal-corp.com.
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