Credit card information of approximately 20 million South Koreans has been stolen from three major banks, KB Kookmin, Lotte, and NH Nonghyup. The information stolen were private details such as names, addresses, phone numbers, bank account numbers, and even social security numbers. While the three banks have issued a public apology, the victims have filed a first class action lawsuit against the banks, each claiming 110 million won (approximately $103 400) in compensation. South Korean President Park Geun-hye and the UN Chief Ban Ki-Moon were among those whose information were reportedly stolen.
The culprit was found to be a computer contractor working for the Korea Credit Bureau, an organization which produces credit scores. The contractor was working on forgery-proofing credit cards when he transferred the victims’ information onto a USB stick in February, June, and December of 2013, according to the Korean Financial Supervisory Service (FSS). He then sold the information to a loan marketer and at least two brokers, most of whom, including managers at marketing firms who have allegedly bought the information, have been arrested.
Korea’s national financial regulator has released a statement: “The credit card firms will cover any financial losses caused to their customers due to the latest accident.” Though the FSS has confirmed credit card passwords were not stolen, South Koreans’ credit card transactions require a card swipe and signature, without requiring a pin or a chip, and, in some other outlets, do not even require a signature.
On average, a South Korean has more than four credit cards, and credit card spending, according to the Credit Financial Association of Korea, totaled up to 451 trillon won in 2012, 66 per cent of the country’s “private consumption.”
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