- European banks freeze PayPal transactions after failure in the fraud system sparks
- Dealers are facing delayed payments as billions in PayPal Direct Debit stopped
- Suspicious wave forcing lenders to suspend PayPal activity throughout Germany and Europe
European banks froze temporarily PayPal transactions worth billions after failure in the fraud triggered widespread suspension of direct debit and delayed payments for online merchants and customers.
A number of German lenders, including Bayerische Landesbank, Hessische Landesbank and DZ-Bank, reportedly stopped direct debts linked to the online payment platform after discovering suspicious activity.
German newspaper Süddeutsche Zeitung said the total amount involved could exceed $ 10 billion. EUR.
“Temporary Service Discontinue”
The problem seems to have started late last week when PayPal submitted a wave of direct debts to banks without filtering them through its fraud control.
It led to an unusual increase in transactions that looked suspicious or potentially fraudulent.
The banks’ own systems marked the irregularities and many decided to freeze all PayPal activity for a period of time.
A PayPal spokesman confirmed the disturbance and said: “Paypal had a temporary service interruption that affected certain transactions from our bank partners and possibly their customers. We quickly identified the cause and work closely with our bank partners to ensure that all accounts have been updated.”
On PayPal’s help page, a bright red banner currently says: “Over the weekend, we experienced a temporary service interruption that resulted in transactions being delayed for a small number of accounts. The problem has since been resolved.”
The German Banking Industry Committee noted that irregularities were observed on Monday and that the individual institutions responded accordingly.
For merchants, freezing payments did not arrive on time, even though customers were still holding on to their money. Insiders told Sz To unite the affected transactions could take days.
The extent of the disturbance and the temporary freezing of payments emphasizes the risk of systems in systems that process such a large proportion of online trading.
The new problem comes shortly after PayPal was linked to the appearance of millions of stolen account information on the dark web. This case was tied to previous violations rather than a new attack, but it still raises questions about the security of online accounts.
