SEOUL, Dec. 18 (Korea Bizwire) — KT has retrieved more than 12,000 small-cell base stations after the devices were linked to a recent unauthorized micro-payment fraud scheme, the telecom company said Thursday.
The recall targets “femtocells,” ultra-small base stations used to boost indoor mobile coverage, after investigators found that illegally modified versions of the devices had been used to facilitate illicit mobile payments.
KT said it began collecting unused units on Sept. 18, focusing on 43,000 femtocells with no activity for the past three months out of a nationwide total of 240,000. About 28 percent of those identified—12,000 units—have been recovered so far.
The company is contacting users individually through its subsidiary employees to verify addresses and arrange on-site collection, a process KT says has slowed the pace of retrieval.
Although the femtocell used in the fraud scheme was not an officially distributed KT product, some experts have suggested that parts from legitimate KT devices may have been dismantled, reused, or modified to create the illegal equipment.
KT said it aims to secure as many physical units as possible regardless of their relevance to the criminal case, calling the effort part of a broader plan to strengthen its security and device-management system.
A joint public-private investigation team is currently examining the hacking method and distribution channels of the illicit equipment and is expected to release its findings before the end of the year.
Kevin Lee (kevinlee@koreabizwire.com)







