An SMS alert service for each card payment made will become mandatory in Korea with hundreds of millions of personal information already exposed. (image: Kobizmedia)
SEOUL, Korea, Mar 27 (Korea Bizwire) – On March 25, the news that the Financial Services Commission and the Financial Supervisory Service would take follow-up measures to protect personal information arrived in the financial sector. With hundreds of millions of personal information already exposed, financial authorities appear to focus on the damage control.
As domestic concerns are mounting over personal data spill and financial fraud which may follow, an SMS alert service for each card payment made will become mandatory in Korea within the first half of this year. The SMS alert service provides instant alert through text messages to the cardholder when transactions are made with either debit cards or credit cards.
If a card is used without the cardholder’s approval, a text message will arrive to notify that and immediate moves can be made to prevent further losses. As of now, 70 percent of the Korean cardholders are receiving this service. The plan is to make the SMS alert service which is currently optional mandatory so that every cardholder can take advantage of the service.
Kookmin Card, Lotte Card and Nunghyup Card which have recently been involved in the series of personal information leaks in total of hundred million cases, are offering free SMS alert services for a year since the end of January as a gesture of indemnity. The financial authorities want to make it universal; however, it will cost 100 billion won annually if all card companies offer the SMS service for free.
Therefore, getting the cost deducted from each client’s points accumulated is being considered. For new clients, the SMS service will be marked as mandatory on the application form. In the long run, the mobile carriers such as SK Telecom and KT will be asked to lower the service fees so that card companies can provide free SMS alerts.
The method of card application will also be reformed to mobile subscription to cut off all the chances of personal data spill. In the new application scheme for merchants, the store owner completes the form on tablets and the information goes straight to the card company without making any stops in between. Related documents will be scanned and no information will be left on mobile devices.
The application for individual memberships will be processed likewise. A financial authority has commented that the foundation of the mobile application system has already been prepared and will be fully implemented in the first half of 2014 to be in use.
Written by Robin Koo (linguistkoo@koreabizwire.com)
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