KT, LG Uplus Under Probe Over Possible Data Leaks After Unauthorised Mobile Payments

(MENAFN- IANS) Seoul, Sep 10 (IANS) The data protection regulator on Wednesday launched a probe into major wireless carriers KT Corp. and LG Uplus Corp. over possible leaks of customer data, following a series of unauthorized mobile payments reported by KT users.

The move comes after dozens of KT subscribers in southwestern Seoul and nearby cities in the broader capital area recently reported the unauthorized payments, raising concerns over potential leaks of their data, reports Yonhap news agency.

The Personal Information Protection Commission (PIPC) announced it would probe the two carriers, noting it had been aware of the data breach suspicions recently raised against them through media reports.

"While the companies in question have not reported personal data leaks, (we) have launched a probe with a focus on confirming the specific circumstances of the incident and whether personal data has been leaked after requests from civic groups and reports from unauthorized payment victims," the PIPC said in a release.

As of Tuesday, a total of 124 cases of unauthorised mobile payments had been reported by KT users since Aug. 27, with damages amounting to 80.6 million won (US$58,000), according to the Gyeonggi Nambu Provincial Police.

The cases have so far been reported from Seoul's southwestern ward of Geumcheon, and the nearby cities of Gwangmyeong and Bucheon, but other similar cases have also been reported in Incheon and Gwacheon.

Police have been in contact with KT to investigate the case.

On Tuesday, the science ministry launched a special team to probe the unauthorized mobile payments.

Meanwhile, the data protection regulator was set to decide penalties against SK Telecom Co. over a major data breach that affected tens of millions of customers.

In April, SK Telecom belatedly reported the breach, in which universal subscriber identity module (USIM) data was potentially leaked during a cyberattack on its servers, prompting the company to offer free USIM replacements to around 25 million users. The regulator earlier wrapped up an investigation into the data breach and notified SK Telecom of its planned measures late last month.

Under the personal information protection law, companies can be fined up to 3 percent of their total sales, although sales from areas unrelated to the violation can be excluded from the calculation.

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