News > FinTech

Samsung red-faced with China hack on LoopPay

By NexChange
FinTech

This week it was revealed that LoopPay, a US subsidiary of Samsung, was targeted by a group of government-affiliated Chinese hackers earlier in the year,

The New York Times reports that the data breech by the so-called the Codoso Group, also called the Sunshock Group, was only discovered in August. It appears they were after LoopPay’s technology, known as magnetic secure transmission (MST).

This is a big worry for Samsung which bought LoopPay in February for $250 million and had put its MST tech at the core of mobile payment service Samsung Pay.

The hackers are said to have broken into LoopPay’s corporate network, but thankfullly not the system that manages payments. The breech was only found when an organization tracking the hackers unearthed LoopPay’s data during a separate investigation.

Samsung and LoopPay have assured the public that the infected machines have been removed, that the service is uaffected, and that customer data is secure.  But the timing could not be worse. Samsung Pay launched in the U.S. just 38 days after LoopPay discovered the attack.

Samsung Pay will now not only have to convince consumers of it advantages of its Google and Apple rivals, but will also need to reassure them of its security.
Photo: Charles Roper
 

 

Subscribe to our Newsletter

Be one of the first to experience the future of financial services