PAYPAL SHUTS DOWN TIO’S SYSTEM.
PayPal said it had shut down TIO’s system after the discovery of a security issue. Neither PayPal nor TIO released details about the issue. In a statement, PayPal said it involves “security vulnerabilities on the TIO platform and issues with TIO’s data-security program that do not adhere to PayPal’s information-security standards.” On its home page, TIO released a statement on the matter, as well, with nearly identical language. A PayPal spokesperson on Monday told Digital Transactions News no further information, including any indication of when the suspension might be lifted, is available.The PayPal statement also hints that the payments company may now re-examine the deal under which it acquired TIO. PayPal paid $233 million for the Vancouver, British Columbia-based company in an agreement announced in February. The deal closed in July. PayPal said it has begun in internal investigation of the security issue and has also brought in outside cybersecurity experts to inspect TIO’s platform.