[Ki Ha-young's Life Card] Credit Card Information Leak? How to Protect My Information

[Asia Economy Reporter Ki Ha-young]Is there anyone these days without at least one credit card? In modern society, anyone can have a card if they want. Credit cards have brought unparalleled convenience to daily life. Now, you can easily see people paying with credit cards or smartphones wherever you go. As demand has increased, cards with various benefits are being released almost daily. Accordingly, Asia Economy delivers various stories related to cards, which are inseparable from our consumer life, through the weekly 'Cards in Daily Life' corner, from introducing new cards to industry behind-the-scenes and guides for card beginners.

Recently, the illegal distribution of 900,000 credit card customer information caused controversy. The data was leaked on the dark web, known as an internet black market where IP tracking is avoidable. Financial authorities are blocking unauthorized use approvals through the Fraud Detection System (FDS), but to prevent possible accidents, card reissuance measures have been initiated.

This information leak is presumed to have occurred through hacking of POS terminals infected with malware before the introduction of IC terminals. POS terminals are devices that swipe magnetic stripes for payment. As card numbers and other data stored on the magnetic stripe were saved on the terminal during payment, increasing the risk of data leakage, financial authorities replaced them in 2015 with IC terminals that process payments by inserting IC chips without storing payment information. Currently, the use of IC terminals with enhanced security authentication is mandatory, and the Korea Credit Finance Association explains that no additional data leaks have occurred.

However, individual efforts are also necessary to prevent unauthorized use of credit cards. Regularly changing online payment passwords is a representative method. Additionally, requesting IC chip priority transactions at merchants can be another way.

If you are worried about unauthorized use overseas, where payments are made only with card number, expiration date, and CVC number, you can consider applying for the 'Overseas Card Usage Priority Service' with your card company. Given that overseas travel has become difficult for the time being due to the COVID-19 pandemic, this is an option worth considering. Also, by consenting to 'Use of Entry and Exit Information' with the card company, the company can receive your entry and exit data and block transactions if unauthorized use occurs abroad. Since this service is free of charge and continuous with a one-time application, it is advisable to apply.

If you suspect information leakage and want to reissue your card, you can apply through each card company’s website, branch offices, or by contacting the customer center and connecting with a representative. If you do not request suspension of the existing card when applying for reissuance, you can use the existing card until you receive and activate the reissued card. Also, reissued cards are initially in a suspended state, so you need to register their use via the card company’s website or the automated response system (ARS) before use. This means reissued cards cannot be used immediately.

This month, information leaks have been reported not only from card companies but also from services like Toss. While payment environments are becoming more convenient day by day, security issues are also emerging simultaneously. Although financial authorities and each financial institution need to strengthen security policies, efforts to protect your precious personal information by yourself are also necessary.