PayPal Holdings, Inc. Prepaid Card Complaint

PayPal Holdings, Inc. Prepaid card department,

Gift or merchant card Unauthorized transactions/trans. issues New Jersey

I have been a PayPal customer since -/-/- with no incidents in that time. The PayPal - - subsidiary of PayPal Holdings has had a major security flaw that became public in -/-/-. Specifically, PayPal 's system had a security flaw that allowed the redemption pages of electronic gift cards purchased from PayPal - - to be indexed by search engines like - and permanently cached by -. As a result, any third party knowing how to run the proper search on - could access both gift card numbers and pins and drain the gift cards of all value. I purchased - - - gift cards from PayPal - - -/-/-. As soon as I learned of the security issue in -/-/-, I checked the balances on the cards and learned that - of my - - - gift cards had been completely drained of all value by an unknown and unauthorized third party. Neither of these gift cards had been used by me, and I protected all information including the gift card numbers and pins. I note that I purchased - - - gift cards in total, and - of the cards were properly used by me, while


In total, I lost $300.00 ( $150.00 for each of the - gift cards ). In communications that I have documentation of, PayPal has created multiple barriers to getting timely resolution of the case and the refund of the lost $300.00. Most of their customer service representatives have not been informed of and trained on how to address the issue, and give deflecting responses ( for example, encouraging customers to seek resolution with - - even though the security flaw was on PayPal 's side ). I finally reached a representative that seemed to have knowledge of the situation, and I have an open case number with PayPal, but we are now long past when I was told to expect resolution and a refund. There is extensive documentation of this problem on the Internet, for example at : - - - This seems to be a major problem that could impact - customers, and PayPal has not taken proper proactive steps to inform customers of the problem and that their gift cards may be at risk. In addition, PayPal has not provided me with timely resolution of my open case. They have created so many barriers to resolution that many customers are reporting on the Internet that they are giving up hope of gaining resolution. It appears that PayPal has realized that they have a large potential liability due to their security flaw, and they hope that by putting enough barriers to resolution in place, they will discourage customers from making it through all of the barriers. In recent responses to some customers published on the -, PayPal is claiming the security flaw only lasted from - - to - -, but many customers are reporting on the Internet that gift cards dating back to -/-/- were accessed in an unauthorized fashion. It seems like PayPal is either engaged in covering up their liability, or still do not fully understand the full extent of their security flaw. There is no way any third party could have had access to my gift card numbers and pins through me. Given that my gift cards were drained -/-/-, concurrent with when the security flaw became public and concurrent with when other customers are reporting similar problems, it seems clear that my cards were part of PayPal 's security flaw.