28 July 2017
visit www.avoka.com

South Korean card firms suspended over data breach

03 February 2014  |  5024 views  |  0 Copenhagen spire

South Korean authorities have told the three companies at the centre of a massive data breach which saw personal information stolen from millions of South Koreans to suspend operations for three months.

The Financial Services Commission has ruled that for three months from 17 February, KB Kookmin Card, Lotte Card, and NH Nonghyup Card will not be allowed to add new subscribers or market insurance policies. The companies have 10 days to appeal, according to Bloomberg.

Last month prosecutors indicted an engineer accused of using his role at the Korea Credit Bureau to steal information on more than 20 million credit card holders from the three firms before selling it on to marketing firms.

Executives at all of the affected firms have proffered their resignations, while authorities temporarily banned financial firms from non face-to-face transactions.

The scandal has provoked a huge response from customers, with around 2.28 million cancelling their cards, 3.84 million asking for cards to be reissued and 840,000 leaving the companies, Financial Supervisory Service figures show.

FSC chairman Shin Je-Yoon told a meeting yesterday that although there has been a drop off in cancellations, "public anxiety still looms large" and the breach should be taken as an "opportunity to overhaul the data protection system and old practices of illegally distributing personal details".

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Insider steals and sells credit card data of 20m South Koreans

Insider steals and sells credit card data of 20m South Koreans

20 January 2014  |  4714 views  |  1 comments | 5 tweets | 7 linkedin
South Korea blames Pyongyang for bank cyber attacks

South Korea blames Pyongyang for bank cyber attacks

11 April 2013  |  4354 views  |  0 comments | 5 tweets | 1 linkedin
Hacker steals Hyundai Capital customer data for blackmail scam

Hacker steals Hyundai Capital customer data for blackmail scam

11 April 2011  |  8830 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
download the paper nowvisit www.finastra.comvisit www.ncr.com

Who is commenting?

Top topics

Most viewed Most shared
US firm to implant employees with RFID chipsUS firm to implant employees with RFID chi...
9385 views 16 comments | 33 tweets | 38 linkedin
Credit scoring startup Aire raises $5m; wins Zopa dealCredit scoring startup Aire raises $5m; wi...
8423 views comments | 9 tweets | 8 linkedin
hands typing furiouslyHow automation can help transform the fina...
8052 views 0 | 6 tweets | 2 linkedin
Industry task force sets out US path to faster paymentsIndustry task force sets out US path to fa...
7819 views comments | 5 tweets | 7 linkedin
Santander looks to smooth fintech integration with BiBoxSantander looks to smooth fintech integrat...
7262 views comments | 16 tweets | 15 linkedin

Featured job

Competitive
London, UK (or flexible)

Find your next job