|Sat Aug 23 2008 13:13:16|
PayPal Germany Responds to Security Concerns
By: Ina Steiner
A fraud-watchdog group based in Germany found what it called security flaws in PayPal Germany's automated phone service. Falle-Internet.de described how fraudsters might use the system to identify accounts that are especially profitable in order to attack and target them with phishing emails or virus attacks.
PayPal said it shut down the service in Germany, and it provided the following statement in response to AuctionBytes inquiries:
PayPal's highest priority is the security of its payment service and our customers' financial information. While our automated phone-based system allows customers to check their account balance and recent transactions, it does not allow callers to initiate transactions or move funds and no financial information is shared using this system. In addition, the system can only be accessed if the caller knows specific account information - such as the phone number and bank account/credit card numbers - that are registered to the PayPal account.
We have shut down this service in Germany. Customers in Germany can still contact PayPal customer service agents by phone to obtain account transaction history and balance information. When doing so, our agents require far more information than the automated system to confirm the caller's identity before providing account information.