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Paypal ignores bug discovery that lets anyone bypass two factor authentication

Researcher told firm about it in June but still had no response
Tue Aug 05 2014, 11:11

Paypal logoA SECURITY RESEARCHER has discovered a way to bypass Paypal's two factor authentication (2FA) security authentication and hack into an account.

"On the 5th of June, 2014, I found a complete bypass for Paypal's 2FA service, in which anybody would be able to access a Paypal account that has 2FA setup, by only logging in through a 'special' Paypal page," said security expert Joshua in his most recent "Just Another Security Blog" post.

After warning Paypal about the bug several times, Rogers claims he has only now made his findings public after Paypal has ignored them.

"On the 5 August, I have decided to release this publicly, because despite two months given, it still hasn't been fixed," he added.

The bug was uncovered when Rogers looked into the way in which Paypal works with eBay to link your eBay account to your Paypal account, and when you sell something on eBay, the fees automatically come out of your Paypal account.

When setting this up, you're asked for your Paypal login to link the two accounts and when you are redirected to the login page, the URL contains "=_integrated-registration".

"Doing a quick Google search for this shows that it isn't used for anything other than eBay; thus it is setup purely for Paypal and eBay," explained Rogers. "Once you're actually logged in, a cookie is set with your details, and you're redirected to a page to confirm the details of the process. And this is where the exploit lays. Now just load, and you are logged in, and don't need to re-enter your login."

Rogers found that the actual bug is in the "=_integrated-registration" function, which does not check for a 2FA code, despite logging you into Paypal.

"You could repeat the process using the same "=_integrated-registration" page unlimited times," he warned.

Paypal is yet to respond to request for comment.

In June a security firm named Duo Security Research also warned that it was possible to bypass two-factor authentication on Paypal. The money transfer service said that all users will need to access an account is a username and password, but the firm added that it has a workaround in place and a fix was on the way.

This problem existed in the mobile Paypal apps that could be tricked into ignoring two-factor authentication protection on user accounts. µ


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