PayPal reported that attackers accessed 34,942 accounts between December 6 and 8, 2022, using login credentials apparently obtained outside PayPal. Depending on the customer’s account, exposed information included names, addresses, Social Security numbers or tax-identification numbers, phone numbers, and birth dates. PayPal described the event as unauthorized account access—not evidence that its password database was breached. New York regulators later fined the company $2 million over cybersecurity failures tied to the incident.
What happened in the PayPal incident?
PayPal’s notice describes attackers using valid credentials to enter accounts during a three-day window in December 2022. The company said it found no evidence that the login credentials came from PayPal’s systems; it believed they may have been obtained through phishing or related activity elsewhere. The Maine Attorney General’s record lists 34,942 affected people, including 146 Maine residents.
The timeline in PayPal’s notice and the state filing is:
- December 6–8, 2022: Unauthorized access to PayPal accounts occurred.
- December 20, 2022: PayPal determined that personal information had been exposed.
- January 18, 2023: PayPal filed its breach notification with Maine and began notifying affected consumers.
- January 23, 2025: New York’s Department of Financial Services (DFS) announced a $2 million settlement related to cybersecurity failures connected to the incident.
Maine’s breach record gives the affected-person count; PayPal’s notification letter describes the access window and response.
Free tools Windows power users keep installed
One-click scans. No signup required.
#1 Best Overall
- ✅ PROTECT ONLINE ACCOUNTS – A password manager, two-factor security key, and secure communication token in one, OnlyKey can keep your accounts safe even if your computer or a website is compromised. OnlyKey is open source, verified, and trustworthy.
- ✅ UNIVERSALLY SUPPORTED – Works with all websites including Twitter, Facebook, GitHub, and Google. Onlykey supports multiple methods of two-factor authentication including FIDO2 / U2F, Yubico OTP, TOTP, Challenge-response.
- ✅ PORTABLE PROTECTION – Extremely durable, waterproof, and tamper resistant design allows you to take your OnlyKey with you everywhere.
- ✅ PIN PROTECTED – The PIN used to unlock OnlyKey is entered directly on it. This means that if this device is stolen, data remains secure, after 10 failed attempts to unlock all data is securely erased.
- ✅ EASY LOG IN –No need to remember multiple passwords because by plugging OnlyKey to your computer, it automatically inputs your username and password. It works with Windows, Mac OS, Linux, or Chromebook, just press a button to login securely!
What is credential stuffing?
Credential stuffing is the automated testing of username-and-password combinations stolen from one service against accounts on another. It succeeds when people reuse passwords: a password exposed in an unrelated breach or phishing attack may still unlock a PayPal account. Unlike password spraying, which typically tries a few common passwords against many accounts, credential stuffing tests known pairs of usernames and passwords. The Massachusetts Office of Consumer Affairs describes this and other cybercrime patterns in its cybercrime and scam guidance.
Because the login can use a correct password, a system that only blocks obviously suspicious or mistyped attempts may not stop it. A unique password for every account and multifactor authentication (MFA) make stolen credentials less useful.
Rank #2
- POWERFUL SECURITY KEY: The YubiKey 5 NFC is the most versatile physical passkey, protecting your digital life from phishing attacks. It ensures only you can access your accounts
- WORKS WITH 1000+ ACCOUNTS: Compatible with popular accounts like Google, Microsoft, and Apple. A single YubiKey 5 NFC secures 100+ of your favorite accounts, including email, password managers, and more
- FAST & CONVENIENT LOGIN: Plug in your YubiKey 5 NFC via USB and tap it, or tap it against your phone (NFC), to authenticate. No batteries, no internet connection, and no extra fees required
- MOST SECURE PASSKEY: Supports FIDO2/WebAuthn, FIDO U2F, Yubico OTP, OATH-TOTP/HOTP, Smart card (PIV), and OpenPGP. That means it’s versatile, working almost anywhere you need it
- PRIMARY & SPARE KEYS: Just like having a spare house key, we recommend buying two YubiKeys - one for daily use and one as a spare. That way you’ll never get locked out of your accounts
What information was exposed?
PayPal’s notice lists the following information as potentially exposed, depending on the customer’s account:
- Name and address
- Social Security number or individual tax-identification number
- Telephone number
- Date of birth
The notice does not say that every affected person had every category exposed. A compromised password can usually be changed; Social Security and tax-identification information cannot, so exposure of those details can create a longer-term identity-theft risk.
Recommended Free Tools
Rank #3
- FIDO2 & Passkey Ready: Business-ready and FIDO2 L1 certified. This key is supported by major management suites and is ideal for both individual and enterprise deployment. Works seamlessly with Gmail, Facebook, GitHub, Dropbox, Coinbase, and more.
- Dedicated Manager App: Use the Thetis Manager App for the initial hardware PIN setup. Setting the PIN on the device first ensures a smooth registration process. Once the PIN is configured, you can begin registering the key across your favorite FIDO2-compatible online services.
- Universal Connectivity (USB-C, USB-A, & NFC): Designed for PCs, Macs, iPhones, and Android. For mobile use, simply unfold the key, align it with your phone’s NFC antenna, and hold for a few seconds to authenticate.
- Enhanced MFA (FIDO2 & TOTP/HOTP): Strengthen your security with flexible options. Use the Manager App to access TOTP/HOTP features for accounts that do not yet support FIDO2.
- Check FIDO2 compatibility before purchase - Known limitations: ID Austria is not supported (requires FIDO2 Level 2). Windows Hello login only works with Windows Enterprise editions that support Entra ID. NFC is supported only through mobile authentication, Not MacOS/windows.
Did attackers take money?
PayPal said that, when it issued its notice, it had no information indicating that the exposed personal information had been misused or that unauthorized transactions had occurred. That was the company’s assessment at the time of notification, not a guarantee that no affected customer ever experienced fraud. Account access can create risks beyond an immediate payment, including account changes, attempted transactions, phishing, and identity theft.
How did PayPal respond?
According to its notification, PayPal masked exposed personal information so it was no longer visible, reset affected account passwords, added enhanced security controls, and investigated the incident with outside counsel. It also offered affected individuals 24 months of Equifax identity protection and credit monitoring as part of the 2023 notification. That offer was tied to the original notice; customers should not assume enrollment is still available.
Rank #4
- USB-C or tap via NFC for easy authentication on any compatible device. No drivers needed; optional Kensington software available for advanced management features.
- Works across Windows, macOS, iOS, Android, ChromeOS, and supports Passkeys and Apple ID.
- Slim, keychain-ready form for easy carry and on-the-go authentication
- IP68-rated for dependable performance
- FIDO CTAP 2.1 for enhanced security features (e.g. resident credentials, Passkey support) and backwards compatibility with CTAP 2. FIDO2 L2 certified security for phishing resistant protection against identity theft and unauthorized access.
What did New York regulators find in 2025?
New York DFS announced a $2 million settlement with PayPal on January 23, 2025. This was a later enforcement action about the 2022 incident, not a new 2025 account breach. DFS said changes intended to make IRS Form 1099-K documents available to more customers exposed Social Security numbers. According to the regulator, the teams implementing those changes were not adequately trained on PayPal’s systems and application-development processes, and required procedures were not followed before deployment.
DFS also identified deficiencies in access controls, identity-management policies, protection of nonpublic information, and defenses against automated login attempts. The regulator said PayPal did not require customer MFA and lacked controls such as CAPTCHA or rate limiting at the time. Its enforcement announcement summarizes the action; the consent order contains the formal findings.
Best Value
- Ultra-Compact FIDO2 Security Key - Plug-and-stay or carry on a keychain. This USB-A hardware security key offers portable, always-on protection for desktop and mobile use. (Item Size: 0.75 X 0.74 IN x 0.25 IN)
- USB-A Hardware Key for All Devices - Works with USB-A ports on PC, Mac, Android, and other laptop/notebook device. Enables secure, cross-platform login with FIDO2.0 passkey support.
- FIDO Certified Security Key - Meets FIDO and FIDO2 standards. Works with Google, Microsoft, GitHub, Dropbox, and more. Please check service compatibility before purchase.
- Passwordless Login with Passkey - Supports passkey login via WebAuthn and CTAP2. Enjoy password-free sign-ins where supported. Not all websites or services currently support passkeys.
- Advanced Multi-Factor Authentication - Offers 200 FIDO2 passkey slots and 50 OATH-TOTP slots. Strong, flexible 2FA/MFA support across various apps and authentication platforms.
What should PayPal customers do now?
Secure the account and any reused passwords
- Open PayPal by typing its address yourself or using the official app. Don’t use a link in an unsolicited breach-related email or text.
- Change your PayPal password to a long, unique one. If you reused the old password elsewhere, change it on each of those services too. A password manager can help create and keep track of unique passwords.
- Enable the MFA options available for your account. An authenticator app, passkey, or security key can offer stronger protection than password-only access; SMS codes are still preferable to no second factor but can be vulnerable to SIM-swapping or interception.
- Review recent transactions, invoices, withdrawals, linked bank accounts and cards, shipping addresses, and contact details. Remove unfamiliar devices, sessions, apps, or linked accounts, and contact PayPal through its official Help or Resolution Center about anything suspicious.
PayPal’s current interface and available authentication choices can vary by country, account type, app version, and rollout, so use the options shown in your own account rather than relying on a fixed menu path.
Reduce the risk of identity and credit fraud
- Review your credit reports through AnnualCreditReport.com and watch bank and card accounts for unfamiliar activity.
- Because Social Security or tax-identification information may have been exposed, consider placing a credit freeze with Equifax, Experian, and TransUnion. A freeze can help prevent many new-credit accounts from being opened in your name, but you will generally need to lift it temporarily when applying for credit.
- If you see suspicious activity, consider a fraud alert and follow the credit bureau’s identity-theft instructions. Monitoring can help flag changes, but it does not prevent account takeover or every kind of identity theft.
- Be wary of follow-up messages posing as PayPal, Equifax, or a credit bureau. Navigate independently to those organizations instead of clicking unsolicited links, and keep the original PayPal notice and any enrollment information.
Maine’s identity-theft guidance explains general consumer steps. A credit freeze is an option, not a requirement for every reader.
Is this the same as PayPal’s 2026 disclosure?
No. The 2026 notice concerned a separate PayPal Working Capital application software error that potentially exposed some customers’ information from July 1 through December 13, 2025. It was a different incident with a different exposure mechanism and period. See the Massachusetts notice for that disclosure.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
Quick wins for a faster PC:
Repair Windows errors before they cause bigger problemsFix Now →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Clear out junk files and repair common Windows errorsFree Scan →
