paypal-ipn before 3.0.0 uses the
test_ipn parameter (which is set by the PayPal IPN simulator) to determine if it should use the production PayPal site or the sandbox. With a bit of time, an attacker could craft a request using the simulator that would fool any application which does not explicitly check for test_ipn in production.
When an actor claims to have a given identity, the product does not prove or insufficiently proves that the claim is correct.
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