Red light¡¯ for Kakao bank security¡¦ Illegal use of check card to go up

[ Cho Eun Gook ceg4204@ ] | 2018-03-19 11:13:13

By Yonhab News

The number of unauthorized use of Kakao bank check cards increased to 100 times that of K-bank. It has been pointed out that there is a problem with the FDS (Overcoming Transaction Detection System), a key security system for banking transactions. Kakao has grown rapidly in the short term. However, it is still evaluated that information security and customer response systems are weaker than existing institutional financial institutions despite the bank was launched at the end of July last year as an Internet bank.

According to the data on the number of Internet banking card issuances and illegal use at home and abroad, which was submitted by the Financial Supervisory Service (FSS), Park Chan-dae, a member of the National Assembly`s Political Affairs Committee, on March 18, A total of 671 card fraud occurred during the seven-month business period.

Among the total number of illegal card usage, 305 were illegal and 366 were illegal. On the other hand, in the case of K-bank, which was launched on April 3rd last year, the number of fraudulent use of domestic and foreign cards was only 7, and the number of fraudulent use of the cacao bank was 96 times higher than that of K-bank.

The amount of credit card fraud is also overwhelming. Kakao Bank suffered a total loss of KRW 50.22 million due to the illegal use of the card, while K-bank accounted for only KRW 170,000.

Although the Kakao bank is far ahead of the number of customers and transactions than the bank, it is pointed out that the number of illegal use of the card in the cacao bank is excessive. As of the end of February, the number of cards issued by the cacao bank was 3.81 million, while the number of cards issued by K-bank was 650,000, which is 5.8 times higher than that of K-bank.

But the bigger problem is that fraudulent use of cacao bank check cards is still happening. In particular, fraudulent use through overseas sites as well as domestic ones is appearing insignificantly. Unauthorized use of check cards through overseas sites is likely to involve overseas hacking organizations or criminal organizations, adding to the seriousness. A real worker, A, said, "I checked the payment letter from early dawn, but the message that the payment was made with a cacao bank card in overseas sites continued." "We can easily confirm that the site has seen such damage on our overseas sites," A said. "We suspect that there is a problem with cacao bank security when we see the same damage repeated."

Meanwhile, the Kakao bank does not offer a clear solution to the seriousness of the problem. "A Kakao bank official said," The number of customers and transactions is much bigger than that of K-bank, so there is more illegal use of the card. "We are working hard to strengthen FDS to prevent illegal use of the card."

Especially, Kakao Bank took measures to reduce fraudulent use such as upgrading the FDS through the Kookmin Card as the number of fraudulent use of cards increased, which acts as a card service agent last November, and expanding professional monitoring personnel.

Experts point out that although Kakao Bank has grown into a huge financial institution that issues 3.81 million cards, it does not have its own over-the-counter transaction system. Unlike K-Bank, which launched as an Internet bank, Kakao Bank does not have a system that filters out abnormal transactions on its own. K-bank has a triple defensive system, such as BC Card, a credit card agency, which operates FDS, and a bank that detects abnormal transactions by its own bank. On the other hand, the Kakao bank puts the FDS completely on the National Card and suspends the account withdrawal only when the National Card is determined to be an abnormal transaction.

A Kookmin card official in charge of the Kakao bank card business said, "There was a part where the card usage pattern of the cacao bank customer was different from that of the ordinary card user so that the illegal use was not filtered out."

By Cho Eun Gook ceg4204@


[ copyright ¨Ï The Digitaltimes ]

DT Main