www.theregister.com 2025/08/28/ -
US payments platform back in action, says it's informing affected customers
Shoppers and merchants in Germany found themselves dealing with billions of euros in frozen transactions this week, thanks to an apparent failure in PayPal's fraud-detection systems.
According to the Association of German Banks, the problem hit on Monday when banks noticed a slew of recent unauthorized direct debits from PayPal. The body said the banks responded in various ways, which is one way of putting it – the Süddeutsche Zeitung reported that some stopped all PayPal transactions, with the total number of frozen payments likely to be around €10 billion.
A spokesperson for the German Savings Banks Association (DSGV), which represents hundreds of regional banks across the country, confirmed the issue to The Register. The DSGV said PayPal had assured it the problem was resolved, adding that PayPal payments had been running smoothly since Tuesday morning and the US payments platform was informing affected customers "directly."
The DSGV said the unauthorized payments had a "significant impact on transactions throughout Europe, particularly in Germany." However, there have been no confirmed reports of the incident being felt outside Germany. Austrian media reported that the banks there had seen no problems.
PayPal is the most popular method of online payment in Germany, having been used for 28.5 percent of online purchases last year, according to research by the EHI Retail Institute. (The next most popular option is buying on account.)
That's largely down to PayPal's payment protection, which appeals to privacy-conscious Germans. In the wake of the unauthorized direct debit issue, financial industry consultant Peter Woeste Christensen told local media that PayPal's particular strength in Germany was partly thanks to the poor user experience of German banks' own apps.
PayPal had not responded to The Register's request for comment at the time of publication, although SZ quoted a spokesperson as saying PayPal had quickly identified the cause and was working with banks to "ensure all accounts are updated." The US company referred to the incident as a "temporary service interruption."
PayPal's reputational hit in Germany is likely to be exacerbated by last week's reports of hackers offering millions of PayPal credentials that they claimed PayPal had recently exposed in plaintext. The hackers' claims appear dubious, with PayPal denying any recent breach, but the reports gained significant traction in Germany.
"It's possible that the data is incorrect or outdated," read a Wednesday advisory from the German consumer organization Stiftung Warentest, which bundled the leak report with this week's snafu. "Nonetheless, PayPal users should change their passwords as a precaution."
The number of reported cyber incidents and online threats in Switzerland rose sharply last year, according to the National Cyber Security Centre (NCSC).
Last year, almost 63,000 cyber-related incidents were reported to the National Cyber Security Centre (NCSC) in Switzerland, an increase of 13,500 cases over the previous year. Between July and December, the NCSC recorded more than 28,000 incidents, slightly fewer than in the first half of 2024.
Fraud, phishing and spam messages continue to be the most frequently reported incidents. The increase on the previous year is mainly due to the phenomenon of false calls in the name of the authorities, with almost 22,000 reports compared with around 7,000 the previous year.
On the other hand, the number of e-mail threats has dropped. Over the past four years, fraudsters have used the telephone more as a communication channel.
The FBI is warning the public that criminals exploit generative artificial intelligence (AI) to commit fraud on a larger scale which increases the believability of their schemes. Generative AI reduces the time and effort criminals must expend to deceive their targets. Generative AI takes what it has learned from examples input by a user and synthesizes something entirely new based on that information. These tools assist with content creation and can correct for human errors that might otherwise serve as warning signs of fraud. The creation or distribution of synthetic content is not inherently illegal; however, synthetic content can be used to facilitate crimes, such as fraud and extortion.1 Since it can be difficult to identify when content is AI-generated, the FBI is providing the following examples of how criminals may use generative AI in their fraud schemes to increase public recognition and scrutiny.
Italian probe reveals “gigantic and alarming market of confidential data,” prosecutors say.
In the ever-evolving landscape of cyberthreats, staying ahead of malicious actors is a constant challenge. The latest edition of Cyber Signals dives deep into the world of Storm-0539, also known as Atlas Lion, shedding light on their sophisticated methods of gift and payment card theft.
Operation PANDORA started with a bank teller in Freiburg, Germany. When in December 2023 a customer asked to withdraw over EUR 100 000 in cash, the bank teller grew suspicious and quickly learned the customer had fallen victim to a ‘fake police officer scam’. He informed the real police, which prevented the victim from handing the money over to the...
LabHost enabled users to set up websites designed to trick victims into revealing personal information – with 70,000 allegedly duped in the UK
Tazama is the first open source platform for financial monitoring and fraud detection.
Two UK teenagers were accused of being key members of the notorious hacking group Lapsus$, with prosecutors alleging that the pair were involved in attacks on companies including Nvidia Corp., Rockstar Games Inc., and Uber Technologies Inc.
Resecurity has recently identified the STYX Innovation Marketplace, a new cybercriminal e-commerce platform focused on financial fraud.
Cyber attacks are common occurrences that often make headlines, but the leakage of personal information, particularly credit card data, can have severe consequences for individuals. It is essential to understand the techniques employed by cyber criminals to steal this sensitive information.
Credit card fraud in the United States has been on the rise, with total losses reaching approximately $12.16 billion in 2021, according to Insider Intelligence. Card-Not-Present (CNP) fraud constituted 72% of these losses, with a substantial portion attributed to Chinese fraudsters.
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Fraudsters who target LinkedIn users in sophisticated investment schemes pose a "significant threat" to the platform, the FBI tells CNBC.
