A failure of security systems at PayPal is causing concern for German banks

Summary

- A failure of security systems at PayPal is currently causing concern for numerous German banks and private customers. A vast number of payments are reportedly being blocked, with merchants waiting on funds in the billions. The US payment service provider PayPal has been quite popular in Germany for years. However, currently both private customers and banks are grappling with a problem. According to the "Süddeutsche Zeitung" (SZ), certain security systems at PayPal have reportedly failed. These are the systems designed to filter out fraudulent transactions. As a result, various German banks are said to have blocked payments from PayPal as early as Monday. The SZ estimated the amount involved to be more than ten billion euros. PayPal security systems down - direct debits submitted unchecked PayPal is regularly exploited by fraudsters to get hold of citizens' money. The payment service's security systems are supposed to check and prevent such activity. However, these systems reportedly failed at the end of last week, causing PayPal to submit direct debits without verification. Portals like "Netzwelt" also report disruptions with the payment service. The blog "Cashys Blog" mentioned technical issues over the weekend. For days, customers have allegedly experienced difficulties processing transactions. Payments via direct debit are primarily being rejected, despite the accounts reportedly having sufficient funds. However, this might not be directly related to the PayPal disruption but rather due to the banks' reactions. According to the "Süddeutsche Zeitung," banks noticed the unusually high volume of direct debits from PayPal on Monday, which appeared suspicious or fraudulent. Banks halted all PayPal transactions To prevent a potentially multimillion-euro fraud, several banks reportedly temporarily halted all PayPal transactions. According to information from the "Süddeutsche Zeitung" (SZ), these banks include "Bayerische Landesbank", "Hessische Landesbank", and "DZ-Ba...