Until just a few days ago, web sites belonging to the world's largest online payment service contained a security vulnerability in a key component that could have been exploited by fraudsters to steal information from customers. PayPal fixed the vulnerability shortly after being notified of its presence by The H's associates at heise Security. The eBay subsidiary was, however, unable to give any information on how such a serious security problem could have remained undetected.
A heise Security reader noticed that the search function on PayPal web pages was not filtering user input correctly, making it a simple matter to inject code into PayPal pages via a crafted URL. The problem affected pages at https://www.paypal.com which use SSL security. Customers log in to the site from these pages and also use them to make payments. For more information on why cross-site scripting vulnerabilities are a very real security problem, see the article Password stealing for dummies on The H.