PayPal data breach class action overview:Â
- Who: Two PayPal users are suing the e-commerce company.Â
- Why: The plaintiffs allege PayPal was negligent in the storage of their information, leading to a data breach.
- Where: The PayPal data breach class action was filed in a California federal court.
PayPal was negligent in its storage of customers’ sensitive personal information, resulting in a data breach that exposed the personal data of tens-of-thousands of users, a new class action lawsuit alleges.
Plaintiffs Ashley Pillard and Destiny Rucker filed the class action lawsuit against PayPal Inc. on March 2 in a California federal court, alleging violations of state and federal consumer laws.Â
According to the lawsuit, PayPal failed to properly secure and safeguard its customers’ sensitive records from hackers, leading to a major cyber attack.Â
In January, PayPal notified its users of a data breach that exposed the personal data of nearly 35,000 users.Â
According to the lawsuit, on Jan. 18, PayPal filed official notice of a hacking incident with the Office of the Maine Attorney General and sent out data breach letters to individuals whose information was compromised.
Based on the notice filed by the company PayPal first detected unusual activity on some of its computer systems on Dec. 20, 2022. In response, the company conducted an investigation. PayPal’s investigation revealed that an unauthorized party had access to certain company files between December 6, 2022 and December 8, 2022.
PayPal would have discovered breach earlier if it wasn’t negligent with data security, lawsuit alleges
The information compromised in the data breach included highly sensitive data that represents a “gold mine for data thieves,” the lawsuit states.Â
It included names, addresses, Social Security numbers, individual tax identification numbers, and/or dates of birth as well as additional personally identifiable information that PayPal collected and maintained.
PayPal and its employees failed to properly monitor the computer network and systems that housed the private information, the plaintiffs allege. Had PayPal properly monitored its networks, it would have discovered the breach sooner, they say.
“Plaintiffs and Class Members were, and continue to be, at significant risk of identity theft and various other forms of personal, social, and financial harm,” the plaintiffs state. “The risk will remain for their respective lifetimes.”
The plaintiffs seek to represent a nationwide class of people who had their private information stolen as a result of the data breach, plus a Nebraska subclass and Texas subclass.
The plaintiffs are suing for negligence, breach of contract and violation of state consumer laws, and seek damages, reimbursement of out-of-pocket costs, and injunctive relief including improvements to PayPal’s data security systems, future annual audits, and adequate credit monitoring services funded by PayPal.
What do you think of the allegations against PayPal in this case? Let us know in the comments!Â
The plaintiff is represented by Kyle McLean, Mason Barney and Steven D. Cohen of Siri & Glimstad LLP.Â
The PayPal class action lawsuit is Ashley Pillard et al., v. PayPal Inc., Case No. 5:23-cv-00936 in the U.S. District Court for the Northern District of California.
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1,346 thoughts onPayPal class action claims company failed to safeguard customer information prior to data breach
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Please add me, my identity was stolen.
Olad Omar
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I was affected as well and I hold a privacy a priority
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Please add m e, I tried so many times reach pay pal about charges, emails, texts I had been receiving. I believe I still have copies. It lists full account numbers, and other personal information. I then contacted Synchrony Bank, was told they are only the issuing bank for credit lines. I was sent back to pp. I could only speak to pp by email, or chat. Their customers service, terrible. Every 5 mins I was speaking to someone different, same with email some one else, other than the person you were originally speak would answer and never get conversation corrected. fraudulent charges would be credited back. When ask how information was released they offer me no answers. By McAfee checking black web o found out my information was exposed. Pay Pal and tmobile just terrible.
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Please add me when they do this case for the state of New Jersey. When they had their data breach and they contacted me or inform me of it they didn’t respond or do anything to it and they kept telling me I had nothing to worry about however all the issues that occurred with my account with they won’t actually blinking out things when they remove stuff off the account when they took stuff out of the account and they kind of tried to erase it basically from the account history online and then they will try to lie about saying stuff is in their system and then third party callers and messages were still texting me about things related through PayPal account and so forth in fact because of their day to reach it actually affected a piece of my technology my laptop to the point where they had a third party hack into my laptop she do some remote work through my PayPal account and PayPal did not want to be held accountable or responsible for it to this day and they are just very horrible at customer service and they didn’t reach they didn’t really care about who they put that rest they didn’t kill what was that risk because it wasn’t their personal information individually being put on the line and they really didn’t care and it showed when you spoke to the representatives about it it showed when you asked for corporate department you would try to deny getting you to a corporate representative and it also showed when even I personally requested for them leaving department there higher up managers it was a huge issue and it will always put me on a whole for hours a different section that I wasn’t looking for at all and then they would have me on hold for hours on again trying to transfer me to supervisors or corporate Representatives or corporate management teams or even a legal department and even then it was like hey I’m sitting in a waiting for you just waiting for hours and days and it was no response PayPal truly does not care at all about the consumers they put at risk globally and they don’t bother to understand that they should be liable they should be held accountable and they should be responsible for paying us confrontation for us being that risk because we still have to deal with the backlash of third party people contacting Us in different formalities or even identity that issues because of this and they’re not doing anything about it.
Please add me!!!