Illegal spam messages (Image courtesy of Yonhap)
SEOUL, Jun. 26 (Korea Bizwire) – A dramatic increase in illegal spam messages, many of which encourage stock investments, has prompted authorities to launch an emergency investigation to determine if the surge is due to hacking of SMS resellers or if these resellers are complicit in the activity.
According to telecommunications authorities and industry insiders, the Korea Communications Commission (KCC) and the Korea Internet and Security Agency (KISA) have begun a written inquiry to explore both possibilities. The initial phase of the investigation is expected to conclude by the end of the month, with on-site inspections of implicated companies planned for July.
KISA reported a 40.6% increase in spam complaints this month compared to June last year. Historically, spam messages typically increase at the start of the academic year in March and April, making this spike in June unusual.
Industry experts suggest that a significant factor in the increase may be due to some SMS resellers, who provide bulk messaging services using the internet, being hacked, resulting in the mass leakage of personal contact information. KISA has indicated that during discussions with telecom operators and SMS resellers, there were suggestions that hacking incidents might have contributed to the surge. Investigations are ongoing to verify these claims.
However, cybersecurity authorities are not solely attributing the increase in spam to hacking incidents. They believe regulatory changes, such as the transmission qualification certification system implemented on June 1 and the amendments to the Capital Markets Act set to take effect in August, may also be influencing factors.
The new certification system requires SMS resellers to obtain transmission qualifications from intermediary operators like KT and LG Uplus before they can send promotional messages. This regulation aims to exclude so-called “pop-up” resellers who are difficult to monitor and enforce against.
As the six-month certification period for existing SMS resellers approaches its end, there is speculation that “spam specialists” may be trying to send as many messages as possible before losing their certification. Additionally, the impending stricter regulations on stock advisory services under the amended Capital Markets Act may have led to a surge in spam messages as companies attempt a final push before the new rules take effect.
A KISA official noted, “There is a possibility that some SMS resellers were aware that the messages they were sending might be spam but chose to ignore this.” The official added, “We are keeping all possibilities open, including the role of reseller hacking, in our investigation. We are also examining whether this recent spike in spam is due to a large-scale, coordinated hacking incident.”
There are around 1,200 registered SMS resellers nationwide. Many operate from residential addresses or small offices, which makes them particularly vulnerable to security breaches.
Kevin Lee (kevinlee@koreabizwire.com)
