PayPal President’s credit card details were stolen, his card was cloned and consequently used to finance a shopping spree.
Irony was not lost on David Marcus as president of PayPal -the online secure payment service- who said that his credit card was probably ‘skimmed’ at the UK hotel he was staying at or at a merchant he visited during his stay in the UK.
PayPal’s Marcus did not miss the opportunity to tout his company’s security benefits by saying that the breach would not have happened should the merchant had the means of accepting PayPal as a form of payment.
“We were the first major player to enter the mobile space in 2006 and we plan to exceed $7 billion in mobile payment volume this year,” PayPal president David Marcus said in a blog post last year. “And we’re on track to change the game again in offline payments.”
Why is PayPal safer?
“Obfuscating card data online, on mobile, and now more and more offline remains one of PayPal’s strongest value props,” Marcus commented on Twitter.
PayPal claims it does not share neither card nor bank account details with merchants when shoppers use the service to buy something.
Whether David Marcus is indeed the latest person to fall victim to credit card fraud or whether this were an ingenious publicity stunt, we will probably never find out.
However, the incident has definitely created a buzz among many and there has been increasing pressure on the card issuers to improve both debit and credit card security features.
- I have been writing articles about finance, the stock market and wealth management since 2008. I have worked as an analyst, fund manager and as a junior trader in 7 different institutions.