QuoteA security research firm has discovered several security problems with PayPal’s iPhone app, warning that hackers can use man-in-the-middle attacks to steal sensitive user data.
QuoteAccording to an audit of the app by Chicago-based viaForensics, the vulnerability stems from the app’s failure to confirm the authenticity of PayPal’s website when communicating over the Internet.
Without that confirmation, a hacker could electronically step between a user and PayPal, pretend to be the PayPal website and gather usernames and passwords. The hacker would need to be in the same physical location as the user or have gained access to the same Wi-Fi network.
In practice, that could mean setting up a Wi-Fi hotspot in a location, such as a train station, and waiting for someone to use the network for a PayPal transaction on their iPhone app. It would be a fishing expedition, but the equipment and software needed is commonly available.
Quote“We are writing this letter to inform you that a very targeted malicious attack took place on our network this morning at 6AM EST. As a result, most of our server operating systems have been corrupted resulting in the current downtime,” the company wrote to the affected customers a few hours ago.
“We have access to all backups and have already figured out a strategy for bringing your servers back up, and have all hands on deck working to restore service,” Reality Check Network President Moisey Uretsky added.
Quote“It was the result of an ex-employee who was with us for three years as a result he had intimate knowledge of our systems which is why the effects are so large,” Uretsky wrote.