Breach of data and trust: What U.S. PayPal users say about data risk
In early May, cyber security researcher, Jeremiah Fowler, discovered a publicly exposed database. A limited sample of the database that Fowler analysed revealed that it contained login information of users of Facebook, Google, PayPal, Instagram, Microsoft among others.
Of the companies featured, PayPal stands out. Not only because of the sensitivity of financial data, but also due to its recent data security history. In January this year, the fintech firm was ordered by the New York State Department of Financial Services to pay a settlement related to a 2022 data breach that affected its users.
Such incidents shape how people view the safety and privacy of their data. In many cases, users learn about a breach from peers, social media, or the news – meaning word of mouth is a critical metric.
YouGov BrandIndex tracks consumer sentiment toward thousands of brands daily. We’ve used it to examine how PayPal’s Word of Mouth (WOM) exposure metric is trending among its data conscious users. These are PayPal users who say they “take moderate care in protecting (their) data” and believe that “limiting who has access to my data is very important (to them).”
In late April, just before Fowler discovered the exposed database, PayPal’s WOM score among this audience stood at just under 20%. In the days after the revelations were made public, it increased above 22%. However, the climb was short-lived as the score steadily fell to 17% by early June.
Fraud vulnerability is rooted in behavior, say PayPal users
While PayPal users recognize data breaches as a major factor in scam and fraud vulnerability, they also point the finger at human behavior.
According to YouGov Profiles - which covers demographic, psychographic, attitudinal and behavioral consumer metrics – 62% of PayPal users cite lack of scam/fraud awareness as the top reason that makes people vulnerable to scams and frauds.
At 60%, PayPal users cite data security breaches, whether through one’s computer or smartphone or tablet etc, as the second most likely cause, a fewer proportion of the general population believes this (54%).
Other significant concerns among PayPal users include being too trusting when purchasing items online or offline (57%), poor password protection practices such as using weak or repeated passwords as a risk (56%), along with simply being too gullible or optimistic about others' intentions (55%).
Concerns around protection of personal details, such as Social Security numbers or home addresses, were also high at 54%, while 52% pointed to the lack of protection on electronic devices that store personal information. Public-space vulnerabilities, such as entering sensitive information at ATMs or checkout counters, were mentioned by 39% of PayPal users, and 34% flagged the danger of sharing login details with friends and family.
Across nearly all categories, PayPal users were more attuned to these risks compared to the general population.
General views on data privacy
YouGov Profiles data shows that similar proportions of PayPal users and the general population consider it very important to limit who has access to their data (58% vs. 60%).
Where nearly four in ten (38%) PayPal users report taking moderate care in protecting their data, over a third (35%) of the general U.S. population report the same. A minority say they don’t care who has access to their data, 2% of PayPal users and 3% of the general population.
Methodology:
YouGov BrandIndex collects data on thousands of brands every day. PayPal’s WOM Exposure score is based on the question: Which of the following online service websites have you talked about with friends and family in the past two weeks? and delivered as a percentage. Scores are based on an average daily sample size of 1423 US adults between April 1, 2025 and June 4, 2025. Figures are based on a 4-week moving average. Learn more about BrandIndex.
YouGov Profiles is based on continuously collected data and rolling surveys, rather than from a single limited questionnaire. Profiles data for the U.S. is nationally representative and weighted by age, gender, education, region, and race. Learn more about Profiles.
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