FailPal
One can expect things like this to happen because the whole world of ethical hacking is actually pretty recent in the grand scheme of things. Perhaps in time these companies will develop a better approach when responding to things like this. The correct coarse of action would be to consult the author and figure out a way to fix the vulnerability. After which the tools can still be useful to other companies that may also be vulnerable and in doing this they will be able to better protect their customers. People like the guy in this article just want to get a little credit for finding something really clever and they are not to be feared. When you turn a blind eye to it or react harshly it will discourage ethical hackers from sharing future findings. We would still be on WEP if it weren't for people like this who were trying to make everyone more safe and secure. The people at Paypal must be completely clueless to these things which genuinely makes me concerned for that sites security. I think I will find another means of paying for things online...