PayPal announced late Friday that TIO Networks, a publicly traded company it acquired in July, 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,” the company said in a press release. It added, “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.” The company noted that it is working with the appropriate authorities to safeguard TIO customers and that its investigation is ongoing.
