Saralnama
European banks, especially in Germany, blocked PayPal payments worth about 10 billion euros on 25 Aug 2025. The German Savings Banks Association said millions of unauthorized direct debits appeared due to a failure in PayPal's fraud-check system. PayPal paused payments after banks reported suspicious transactions. The company said it quickly found the problem and worked with banks to fix it. Payments have returned to normal. The issue affected many payment transactions across Europe. Authorities were informed about the incident. PayPal's system is designed to stop fake direct debits, which criminals create by tricking people into giving their bank details. This failure allowed unauthorized payments to reach banks. PayPal shares fell 1.9% after the news. The company is working to prevent such problems in the future. (Updated 27 Aug 2025, 21:33 IST; source: link)