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PayPal patched a vulnerability in its authentication flow in December 2019. SecurityWeek reported that, under a specific set of conditions, an attacker could have used a CAPTCHA-related login sequence to obtain a user’s email address and plain-text password. The report does not establish confirmed exploitation or say how many users may have been affected.

How the PayPal password vulnerability worked

SecurityWeek’s January 9, 2020 report described a chain involving cross-site request forgery (CSRF) tokens, a session identifier, cross-site script inclusion (XSSI), and PayPal’s CAPTCHA-validation path. Researcher Alex Birsan found that authentication-related values were placed in a JavaScript file and could be retrieved using XSSI. Those values alone did not enable a direct attack; the report describes them as part of a longer sequence.

In that sequence, repeated login attempts triggered a CAPTCHA challenge. The CAPTCHA validation response included a self-submitting form containing the latest login request data, including the email address and plain-text password. SecurityWeek reported that Birsan found a way to obtain additional required tokens and retrieve those credentials through the endpoint. The report also described a similar exposure of plain-text credit-card data on some unauthenticated checkout pages.

What a user would have needed to do

The reported password-exposure scenario required a targeted user to visit an attacker-controlled website and then log in to PayPal in the same browser. The vulnerability was not described as a way to steal passwords from accounts at random or simply by knowing a user’s email address.

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Did PayPal fix the vulnerability?

SecurityWeek says Birsan submitted the report to PayPal through HackerOne on November 18, 2019. PayPal validated it 18 days later and released a patch on December 11, 2019. The patch added an additional CSRF-token requirement to the /auth/validatecaptcha endpoint; according to SecurityWeek, that token could not be leaked using the same XSSI technique. The article attributed a $15,300 bug-bounty award to PayPal.

SecurityWeek did not report a confirmed number of compromised users or establish that credentials were actually stolen. It also did not settle whether PayPal notified users. The available account of the incident is SecurityWeek’s reporting; no official PayPal incident advisory or primary technical disclosure is established here. Read SecurityWeek’s report.

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What to do about a PayPal password-reset email

For an unexpected password-reset message, avoid clicking its link. Instead, open PayPal directly by typing its address into your browser or using its official app, then check your account there. PayPal’s current guidance also recommends using a unique password, considering a password-manager app, and enabling two-factor verification where available. These are general account-protection steps, not the specific fix for the 2019 vulnerability. PayPal’s account-security guidance.

  • If you clicked a suspicious link or entered your password on a page you now distrust, go directly to PayPal and change your password to a unique one.
  • Review recent account activity and contact PayPal through its official help or resolution channels if you see a transaction or change you did not make.
  • Enable two-factor verification if the option is available for your account, and secure the email account associated with PayPal as well.
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Current PayPal security features and reporting

PayPal’s security technology page describes passkeys and provides a route for researchers to report vulnerabilities through its HackerOne partnership. That information concerns current security features and reporting; it does not change the historical status of the CAPTCHA-flow vulnerability, which SecurityWeek says PayPal patched in 2019. PayPal Secure Technology.

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