South Korean regulators Financial Services Commission (FSC) and Financial Supervisory Service (FSS) are, reportedly, planning to suspend three credit card firms for three months, following the outbreak of data theft from credit card holders’ accounts in the country.
The three firms to be penalised are KB Kookmin Card, NH Nonghyup Card and the Lotte Card.
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FSC secretary general, Koh Seung Beom, said the companies have ten days to appeal the ruling before the FSC meets on 14 February 2014 to confirm the penalty.
The regulators fear that the sensitive user information including personal ids, bank account numbers, addresses and credit ratings of around 20 million people could be used for financial scams.
FSC and FSS will ban the three firms from adding new clients and providing card loans and cash advance services.
Financial authorities said they will also begin the ‘fast-track suspension’ system in cooperation with the police to immediately track phone calls suspicious of financial scams with special attention to online bank transactions above KRW1m ($921).
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By GlobalData
