PayPal users in Germany advised to check accounts after security breach

PayPal customers in Germany have been advised to check their accounts due to disruptions to the company’s security systems. Banks have blocked billions of euros' worth of payments.

PayPal security systems fail in Germany

PayPal malfunctioned last week, when security systems designed to flag and block suspicious or unauthorised direct debit transactions stopped working. This meant money transfers were completed without the usual safety checks.

In response, German banks began blocking transactions to prevent any potentially suspicious or unauthorised payments from being completed. Users with accounts at a bank that is part of the Sparkassen-Finanzgruppe, including Sparkasse, Landesbank Berlin, and DSV-Gruppe, were among the worst affected.

PayPal is the most popular online payment service in Germany, with around 30 percent of online payments in the country completed via the platform. Speaking to the dpa, a spokesperson from the US company said the operations had returned to normal, but were being closely monitored.

PayPal users should check their accounts

While PayPal’s security systems are back up and running, users in Germany have been advised to carefully check their accounts for any suspicious or unauthorised transactions. Cybercriminals commonly use unauthorised direct debit transactions to steal from users’ PayPal accounts.

Responding to the events, a spokesperson from Germany’s Federal Financial Supervisory Authority (BaFin) reminded that affected PayPal users are protected by European legislation for damages incurred through unauthorised transactions.

If you suspect an unauthorised payment has been taken from your PayPal account, you should contact your bank to report the issue. If your bank does not accept your request but you are sure the payment was unauthorised, you can submit a complaint to BaFin (in English).