1. WELCOME EVERYONE ! WE ARE SO DELIGHTED THAT YOU COULD JOIN US TODAY IN THIS PRESENTATION!

2. ITEC 610 Group 3 Dan Matheny Jean Lordeus Guy Williams Kouam 3. Agenda

Company Background

Corporate Timeline

Textbook Case Study Problem Facing PayPal

Reaction to the Issue

Outcome of the Proposed Solution

Additional Issues at PayPal

Evaluation of Solutions

Summary

References

4. Company Background

Service that allows members to send/receive money

Website:https:// www.paypal.com

Corporate Headquarters

• 2211 North First Street

• San Jose, California 95131

President Scott Thompson

94 million active accounts in 190 markets and 24 currencies

PayPals 2010 annual revenue was $3.4 billion, up 23 percent year over year (PayPal, 2011)

5. Company Timeline

1998 Founded by Peter Thiel and Max Levchin

2002 Acquired by eBay

2005 PayPal Acquires VeriSign's Payment Gateway

2006 PayPal Expands Internationally

• Language/Currency Compatibility Issue

2009 Offer Bill Me Later Option

2010 Now on Facebook, iPhone, and Android

6. Case Study Issue Facing PayPal

• Textbook Case Study Outlines Polylingual Issue

• • Foreign Language and Currency

• Hindered International Expansion

• Threatened Company Future

• Needed Effective and Permanent Solution

• (Marakas & OBrien, 2009)

7. PayPals Reaction to the Issue

• Re-architecting Software Code with Internal Solution

Accommodate the Language Localization Issues

• Recognize Country/Location Automatically

• Polylingual Simultaneous Shipping SimShip

8. The Outcome

Successful Implementation of SimShip

Overcame/Solved the Polylingual Issue

• No longer a relevant problem at PayPal!

Currently Accepts 15 Languages, 17 Currencies, 190 Markets Worldwide

Expected to Process $100-$120 Billion in 2011.

• Projected Profit of $4-$5 Billion in 2011

• • (Chowdry, 2009)

The Solution was a Huge Success

9. Issues Beyond Case Study

Security of Transactions

• Phishing Emails and Spoof Sites

• Security Vulnerability of Mobile App

• Backend System Security Holes

10. Phishing and Spoof Sites

Most Common Issue Facing Customers

• Emails Targeting Users

Lead PayPal Users to Fake or Spoof Sites

• Looks Like Legitimate Website

Steal Information, Identity, Money

11. Recommended Solution

Never Click Link that Request Personal Info

PayPal Will Never Ask for the Following Via Email

• Credit Card Numbers

• Bank Account Information

• Drivers License Number

• Email Addresses, Full Name or Passwords

• (PayPal, 2011)

12. Mobile Device Vulnerability

ViaForensics Uncovered Security Issue with iPhone

• Potential Identity Theft

• Financial Risk

PayPals Response

• Quickly Reacted to Issue

• Created and Released Update to Correct App

• (Ihaas, 2010)

13. Backend System Security

Numerous Security Holes

• Discovered by Avnet Technologies Researcher

Backend System

• Business and Premier Accounts

• Exposed Massive Amounts of Customer Data

PayPal Patched Security Holes

(Prince, 2010)

14. Evaluation of Solutions

Case Study Issue of Foreign Language/Currency

• SimShip Solution Very Successful

• Company Expanded Internationally

• Business Revenue Growth

Other Security Vulnerabilities

• PayPal Very Proactive

• High Degree of Customer Confidence

15. Summary of PayPal

Currently the most popular online payment system.

PayPal has Addressed Issues Effectively

Company is Leader in Industry

Customers Trust the Service

Company Committed to Quality/Integrity

16. References

Chowdry, A. (March, 2009). PayPal expects revenue to increase substantially. Retrieved fromhttp://pulse2.com/2009/03/11/paypal-expects-revenue-to-increase-substantially/

Ihaas .(2010). ViaForensics: viaForensics uncovers PayPal application vulnerability. Retrieved fromhttp://viaforensics.com/press-releases/viaforensics-uncovers-paypal-application-vulnerability.html

Marakas G. & Obrien J. (2009). Management information systems. pp. 473-474. McGraw-Hill

PayPal. (2011). Welcome to the press center. Retrieved fromhttps://www.paypal-media.com/who

Prince, B. (2010). PayPal Patches Critical Security Vulnerabilities. Retrieved March 2011 fromhttp://www.eweek.com/c/a/Security/PayPal-Patches-Critical-Security-Vulnerabilities-807636/