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http://www.doctorofcredit.com/paypal-digital-gifts-hacked-last-month/#comment-291944

I apologize to the mods if this is posted in the wrong place, but I felt this information needs to get out to everyone ASAP.

Doctor of Credit is reporting that the Paypal Digital Gifts System was hacked in August and many gift cards bought on eBay through PPDG now have a balance of $0.

I can confirm 2 of my Best Buy gift cards now have a balance of $0.

If you bought any gift cards through PPDG in the last 2 months, check your balance immediately.

Member Summary
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How long did you wait before PPDG responded? Four days since I contacted them, and no response so far.

yoregano (Dec. 02, 2016 @ 12:11p) |

Sorry that it took so long to respond. Frankly, I hardly ever come to FW anymore. Yes, via their Facebook email address.... (more)

irobot (Dec. 02, 2016 @ 3:53p) |

Sorry for not reading the whole thread. Who Is my first point of contact to remedy a $100 Best Buy card that was drained... (more)

TravelerMSY (Dec. 03, 2016 @ 4:31p) |

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only recent purchases?

What's their email?

https://www.paypal.com/selfhelp/help/contact/email/t_s doesn't work

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needhelpplease said:   only recent purchases?

What's their email?

  No one seems to know any information, since it seems like paypal/eBay are trying to hide this under the rug. I bet you they are hoping people don't realize this for a few months until it is too late.

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I just checked my Southwest cards on SW's website and it says my card numbers are invalid.
But when I call they said there's still money on it. Time to find a place I want to go and drain the cards.

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Unless your broke is there really ever a good reason to buy gift cards at all???

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jpessin3 said:   
needhelpplease said:   only recent purchases?

What's their email?

  No one seems to know any information, since it seems like paypal/eBay are trying to hide this under the rug. I bet you they are hoping people don't realize this for a few months until it is too late.

  Legally they have to disclose it.

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kingdoodler said:   Unless your broke is there really ever a good reason to buy gift cards at all???
  Yes, absolutely!  You can save 20-50%, plus you can stack with cashback from ebates and others for even more discounts.

Fortunately all my cards are ok (for now anyway)

You can buy (or sell/dump) cards at many places.  I like using www.giftcardgranny.com... great broker site that can direct you to the best deals at individual exchange sites.

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Mulox said:   
kingdoodler said:   Unless your broke is there really ever a good reason to buy gift cards at all???
  Yes, absolutely!  You can save 20-50%, plus you can stack with cashback from ebates and others for even more discounts.

Fortunately all my cards are ok (for now anyway)

You can buy (or sell/dump) cards at many places.  I like using www.giftcardgranny.com... great broker site that can direct you to the best deals at individual exchange sites.


 

  And who protects you if things go south? Besides it seems like way too much work for me to keep track of things. With Credit Cards you can still get some hefty discounts, plus great perks like price protection, extended warranties ect.

For most people with gift cards the risk is not worth the payoff.

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gd78 said:   I just checked my Southwest cards on SW's website and it says my card numbers are invalid.
But when I call they said there's still money on it. Time to find a place I want to go and drain the cards.

  If you are looking to drain right away you could just book the most expensive trip you can find and then cancel. It gives your funds a 1-year shelf life but probably not a bad option if you are planning to travel anyway. Southwest has no cancellation fees so that makes it a bit better.

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Both my eBay ecards purchase on 08/18 were zero out and I just file the dispute to paypal.

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jpessin3 said:   http://www.doctorofcredit.com/paypal-digital-gifts-hacked-last-month/#comment-291944 

I apologize to the mods if this is posted in the wrong place, but I felt this information needs to get out to everyone ASAP.

Doctor of Credit is reporting that the Paypal Digital Gifts System was hacked in August and many gift cards bought on eBay through PPDG now have a balance of $0.

I can confirm 2 of my Best Buy gift cards now have a balance of $0.

If you bought any gift cards through PPDG in the last 2 months, check your balance immediately.
 

  How do we know the issue is restricted to the past ~2 months of sales only? What's not to say there is more that is compromised?

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You are right, we really have no idea how far back this goes. We still don't know what paypal will make you do to get your money back - what about people who got the gift cards as a present? Don't they have a right to be refunded since this is clearly paypal's fault. This is going to be a huge mess, and if it is as widespread as it sounds, may involve a huge lawsuit if paypal/eBay try to give people a hard time getting their money back.

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Omg i was wondering why my refunded gift card has no balance -_-.

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madcowdisease said:   
jpessin3 said:   http://www.doctorofcredit.com/paypal-digital-gifts-hacked-last-month/#comment-291944 

I apologize to the mods if this is posted in the wrong place, but I felt this information needs to get out to everyone ASAP.

Doctor of Credit is reporting that the Paypal Digital Gifts System was hacked in August and many gift cards bought on eBay through PPDG now have a balance of $0.

I can confirm 2 of my Best Buy gift cards now have a balance of $0.

If you bought any gift cards through PPDG in the last 2 months, check your balance immediately.

  How do we know the issue is restricted to the past ~2 months of sales only? What's not to say there is more that is compromised?

  This is what I'm wondering, too. Do we know it's limited to gift cards or other personal/financial info paypal has on file? I have a feeling they wouldn't tell us unless forced.

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kingdoodler said:   Unless your broke is there really ever a good reason to buy gift cards at all???
  
When I know I'm going to be placing a big order somewhere, like a $100 trip to Sephora or Forever 21, I buy a discounted gift card first. I go through Ebates to Raise.com or Giftcardmall and get CB on them. So after Cash Back if I pay $70 for $100 Sephora card, I saved $30 on top of any other deals. It takes some planning and can be a PITA but it's very often worth my time. 

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My $100 iTunes gift card is at $0. The email had been unopened, and I just opened it and checked the balance. I had purchased it in mid-August. Who do I call about this?

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Hmm. Losing a couple of hundred dollars is not a small deal.

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I had an Outback card drained by some scrub in Atlanta. PPDG blamed Outback and Outback blamed PPDG. I am out the money for now...

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fearless62 said:   My $100 iTunes gift card is at $0. The email had been unopened, and I just opened it and checked the balance. I had purchased it in mid-August. Who do I call about this?
  I would suggest you wait 2 or 3 days and see what happens. Calling paypal tomorrow will probably be a nightmare as they probably will be flooded with thousands of calls. If this is as widespread as I think this is, it will come out in the press and paypal will have to respond.

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I have a $50 TGI Friday gift card with $0 balance... I contacted Paypal they point finger and TGI Friday's and TGI Friday's points finger back at Paypal Digital Gift Cards and then repeat. Only solution is to file a VISA chargeback and that is what Paypal told me to do, because they said there was nothing they could do since they don't have Paypal protection for gift cards, even though they are the seller.

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I think PayPal did me a favor when they blacklisted me.

Good luck y'all, hope your experiences with them aren't as miserable as mine were.  Remember they're a company and not a bank, and be sure you never trust them with much of your money.

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So paypal's system was clearly hacked and they are trying to deny it...this is going to get really interesting. I have a feeling that people are going to start filing complaints really soon against them with the FTC and the lawsuits will also start flying. Also, if they won't admit to their system being hacked, who in the world would buy a gift card from them again?

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I have some stuff from April that still had a balance, quickly drained it onto a new card. However I have dozens of eBay GCs that I havent been keeping track of which got drained and which havent... so I am likely completely screwed.

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madcowdisease said:   
gd78 said:   I just checked my Southwest cards on SW's website and it says my card numbers are invalid.
But when I call they said there's still money on it. Time to find a place I want to go and drain the cards.

  If you are looking to drain right away you could just book the most expensive trip you can find and then cancel. It gives your funds a 1-year shelf life but probably not a bad option if you are planning to travel anyway. Southwest has no cancellation fees so that makes it a bit better.

  Thanks for the tip. Might as well convert it to a travel credit that's attached to my name so it can't be stolen.

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kingdoodler said:   
Mulox said:   
kingdoodler said:   Unless your broke is there really ever a good reason to buy gift cards at all???
  Yes, absolutely!  You can save 20-50%, plus you can stack with cashback from ebates and others for even more discounts.

Fortunately all my cards are ok (for now anyway)

You can buy (or sell/dump) cards at many places.  I like using www.giftcardgranny.com... great broker site that can direct you to the best deals at individual exchange sites.


 

  And who protects you if things go south? Besides it seems like way too much work for me to keep track of things. With Credit Cards you can still get some hefty discounts, plus great perks like price protection, extended warranties ect.

For most people with gift cards the risk is not worth the payoff.

  You are entitled to your opinion, but I think it's most definitely worth doing.  I have saved THOUSANDS of dollars over the last 10 years doing gift cards!

Some other points to consider:

1. This incident is a fluke, and a first... when do you recall a previous gift card incident like this?  Now I am NOT downplaying the severity and seriousness of the current incident - this is going to really hurt PayPal's image/brand and cause a lot of pain for a lot of folks. I am just saying this is a once-in-a-decade type issue, not an everyday occurrence.  To put it another way, if you buy 5,000 gift cards in a 15 year span, maybe you have a risk of 1 of those 5,000 getting hacked.  Those are pretty good odds if you ask me.  Once the hype of this incident blows over, and PP tightens the screws on security to address the issue, people will go back to buying digital cards again, I guarantee it...

2. If you do as St4rdust suggests and wait to buy the GCs until the last minute... when you are ready to make the purchase with the merchant, you pretty much eliminate all risk, so even the 1 in 5,000 is not an issue

3. This hack was for digital cards (electronic codes) only... you are always safe buying the physical plastic cards and having them shipped to you, because those have the card/pin numbers covered with scratch-off material

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GCs are like cash and they always carry some risks of being stolen or lost. However my favorite GC is Amazon GC because you can immediately redeem it into your account. Also since it's always linked to an account it is a lot less likely to be stolen or misused. Thanks to OP for the heads up. I do have a Sephora GC bought in June that could be at risk....gotta get DW to check it out if it's not fully used yet... She is usually quite good at "using up GCs quickly" though.
I have some other digital GCs not from Paypal that could also be at risk at any time, too... But the discount % was so huge that I felt compelled to take the risk. The bottom line is if you want to keep GCs for a couple months it is best to get physical not digital GCs. (except for Amazon GCs)

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Thanks jpessin3!
Does anyone know (from personal experience or otherwise) if PayPal Wallet is/was also affected? Thanks!

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I bought two Sears gift cards last month, haven't used either one. Both still have a $100 balance. I guess even people who steal gift cards have their standards...

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We don't know if every gift card was hacked or just some of them. Also, usually these hackers sell these gift cards on the black market, so just because yours hasn't been used yet, doesn't mean it won't get used in the next few days.

The real issue now is, if it was widespread on the paypal system and they knew about it (as it clearly seems they did by taking down the store for a week at the end of August), why didn't they warn people? Why didn't they issue people new gift cards? I think that might really be the basis for a huge class action lawsuit.

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When I tried to buy a discounted Lowes GC via Paypal Digital Gifts back in July, Paypal didn't allow it, and blacklisted my account instead. No explanation from them. Nobody could tell me why, except that there was a "security issue". It made no sense, but I wonder now if their security problems go back further than just August, and may be more widespread than just this hack.

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I think there should be a class action suit against Paypal/PPDG/eBay.

All Paypal gift cards used to be tracked in your wallet. Once you used a gift card on eBay it was linked to your eBay ID. That would have prevented fraud of at least the PP gc's. When you return an item now (or get a refund) from an eBay item purchased with a gift card - it just shows a reference number in PayPal - not the gift card number.

There needs to be a way of displaying all transactions on a gift card number.

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sdskees said:   I bought two Sears gift cards last month, haven't used either one.
  
Adrenaline junkie?  

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parmenides said:   
sdskees said:   I bought two Sears gift cards last month, haven't used either one.
  
Adrenaline junkie?  

  Masochist. lol

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gd78 said:   I just checked my Southwest cards on SW's website and it says my card numbers are invalid.
But when I call they said there's still money on it. Time to find a place I want to go and drain the cards.

  I don't think this is a fraud issue unless it is along the vein of Hyatt gift card fraud.  I have both ecerts from paypal digital gifts and physical gift cards from cardency that give me the same error.  I applied all the paper certs with no problems when booking a flight.  Still have 2 physical cards to use but I am going to wait and see what happens.  BTW I called SWA and even if you buy a refundable ticket they said that any gift certificates funds are not refunded but rather converted to travel funds which expire 12 months from reservation date. 

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http://www.ghacks.net/2016/09/06/paypal-digital-gift-cards-code-... 

Explanation for the link from DeGlass, nuts that it was all searchable online, not so much a hack...more very poor web design/programming by Paypal.

Holy fudge, you can still access all the links, I thought all the links would have been pulled by now (but the ones i checked are zeroed out)

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Just checked the remaining balance on a Southwest gift card I purchased in July.  Seems I've been hit also as the balance shows zero.

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Think it is more widespread than August.  The eBay GC I purchased last December from Amex Newegg deal I am unable to verify funds.

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​I don't get it, these cards aren't cash, so I can't imagine that some hacker hacked tens of thousands of Outback gift cards, then went on a eating spree and bought hundreds of blooming onions for him and all his friends.

Skipping 186 Messages...
rated:
Sorry for not reading the whole thread. Who Is my first point of contact to remedy a $100 Best Buy card that was drained by a scammer and showing $0?

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