A Thing
The Green SheetGreen Sheet

Monday, December 4, 2017

TIO Networks still down, investigation of breach continues

The operations of TIO Networks remain suspended to protect customer data during an ongoing investigation of TIO platform vulnerabilities, according to a Dec. 1, 2017, update from PayPal Holdings Inc., which acquired TIO in July. The suspension began Nov. 10, after PayPal discovered security vulnerabilities on the TIO platform, as well as issues with TIO's data security program that do not adhere to PayPal's information security standards, PayPal stated.

In its update, PayPal noted that a review of TIO's network has identified a potential compromise of personally identifiable information for approximately 1.6 million customers, as well as evidence of unauthorized access to TIO's network, including locations that stored personal information of some of TIO's customers and customers of TIO billers. "The PayPal platform is not impacted in any way, as the TIO systems are completely separate from the PayPal network, and PayPal's customers' data remains secure," PayPal added.

TIO is a cloud-based, multichannel bill payment processor that reportedly processed over $7 billion in payments for 14 million customers in 2016. When PayPal heralded its intention to acquire TIO in February 2017, Dan Schulman, President and Chief Executive Officer of PayPal, said, "By acquiring TIO and integrating bill payment into our global payments platform, PayPal adds another key service in our efforts to become a part of a consumer's everyday financial life. … TIO's digital platform and physical network of agent locations make paying bills simpler, faster, and more affordable. We are excited by the opportunity to extend this valuable service to our existing customers and welcome new billers and customers to PayPal."

Notification, remediation efforts

TIO is now working with the companies it services to notify potentially affected individuals. "Notification is occurring primarily through mail and email, depending on certain factors," TIO stated.

PayPal is working with consumer credit reporting agency Experian to provide free credit monitoring memberships for 12 months (24 months for customers whose Social Security numbers were exposed). Membership benefits include:

  • A credit report upon enrollment
  • Active credit monitoring for fraud and identity theft
  • Identity restoration services, including assistance with placing an initial fraud alert or a freeze on the credit file, disputing charges, and closing accounts
  • $1 million identity theft insurance
  • A toll-free call center with trained staff dedicated to answering any questions

Further details are available at www.tio.com . end of article

Editor's Note:

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
A Thing