"When Asked for Entire ID or Card Password, Be Suspicious"…Financial Supervisory Service Issues Warning

Frequent Online Shopping Card Payment Frauds
Be Careful with Overseas Direct Purchases... Use Virtual Cards, etc.

As fraudulent schemes involving the illegal theft and use of card information on online shopping malls continue to emerge, financial authorities have urged consumers to exercise special caution. They emphasized that legitimate shopping malls do not require the full card password or resident registration number, and warned against carelessly storing card information on overseas direct purchase sites.

On the 13th, the Financial Supervisory Service issued a consumer alert regarding the use of online shopping. This was due to an increase in complaints about card information leaks and unauthorized use caused by phishing and hacking, mainly in online shopping malls and other e-commerce platforms. Related complaints rose nearly threefold from 104 cases in the first quarter of last year to 303 cases in the fourth quarter. In particular, they urged vigilance as cases of illegal distribution and sale of domestic card member information continue to occur in overseas internet dark markets.

Fraudsters inserted fake payment windows resembling real ones into some online shopping malls with weak security to steal card information. They designed the process to mislead users into thinking they must enter all card information and personal data (expiration date, CVC, resident registration number, card password) to continue making card payments.

They especially exploited the fact that some online sites allow payments by entering card numbers and passwords without additional authentication steps. For example, in KG Inicis payments, users can complete a payment by entering the card number, expiration date, password (first two digits), and date of birth.

Card information leaks have also surged at overseas online merchants. Unlike domestic sites, many overseas sites do not encrypt card information and store it on their platforms for payment processing. Additionally, fake apps impersonating well-known overseas sites have been created to lure users into entering their card information.

Therefore, special caution is necessary when using online shopping malls. First, be suspicious if excessive information such as card numbers, resident registration numbers, or card passwords is requested. Legitimate transactions do not require entering the full resident registration number or all four digits of the card password during card payments. Obtaining a virtual card for overseas online transactions in advance through the card company’s app is also a good measure. If phishing is suspected, immediately contact the card company to block the card and request reissuance.