PayPal has been slapped with a $2 million fine by New York regulators after a significant cybersecurity failure exposed the personal data of thousands of its customers.

PayPal will pay a $2 million civil fine over cybersecurity failures that led to the exposure of customers' Social Security numbers in late 2022, New York state's Department of Financial Services said on Thursday.

PayPal has been hit with a $2 million fine by New York's financial regulator, the Department of Financial Services (DFS). This is due to cybersecurity issues that led to a data breach in December 2022.

PayPal Holdings (PYPL) agreed to pay a $2M penalty to New York State for violations of the state's Department of Financial Services cybersecurity regulation, DFS Superintendent Adrienne A. Harris said on Thursday.

PayPal’s mismanagement of cybersecurity led to unauthorized access to customers’ Social Security numbers and other private information. ・Consumer Impact: Affected users faced heightened risks of identity theft due to these lapses.

PayPal, Inc., one of the world’s leading financial technology firms, has agreed to pay a $2 million penalty to New York State following a cybersecurity breach that exposed sensitive customer information, including Social Security numbers.