12:20 PM EST, 01/23/2025 (MT Newswires) -- PayPal ( PYPL ) will pay a $2 million penalty to New York State for violating the state's cybersecurity regulation, the New York State Department of Financial Services said Thursday.

A probe revealed that PayPal ( PYPL ) failed to use qualified personnel to manage key cybersecurity functions and failed to provide adequate training to address cybersecurity risks, the DFS said.

These failures led to sensitive customer information, including social security numbers, being left unredacted and easily accessible to cybercriminals, it added.

"Qualified cybersecurity personnel are the first line of defense against data breaches," said Superintendent Adrienne Harris.

"Providing proper training and effectively implementing cybersecurity policies and procedures are vital steps to protecting sensitive data and mitigating risks," Harris added.

The DFS also said the company did not require customers to use multifactor authentication to help prevent unauthorized access. It added that PayPal ( PYPL ) has since remediated the issues and improved its cybersecurity practices.

PayPal ( PYPL ) didn't immediately respond to a request for comment from MT Newswires.

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