New measures to make mobile payments secure

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New measures to make mobile payments secure

The government on Tuesday announced stronger measures to ensure that customers’ information is protected when they make payments on their mobile phones.

In Korea, a customer can make mobile payments of less than 300,000 won ($269) per month, which will then be included in their monthly bill.

The Ministry of Science, ICT and Future Planning decided to revise the telecommunications act following consumer complaints over financial scams that have led to theft of personal information during the mobile payment process.

According to the ministry, 12,840 people submitted complaints saying they were defrauded this year. The revised act will be effective Dec. 1.

The most common scam involves a preinstalled malicious app that connects the smartphone owner to a fake payment page and then steals the text messages used for verification that are sent by the mobile payment companies, as well as identification and banking information.

Three major changes will be made to the mobile payment act.

Starting in December, mobile payment companies will use a standardized payment form that also must be used by all of their affiliated online malls.

The act also requires each mobile payment company to create a new self-verification method using a double-encrypted instant password from the smartphones’ USIM chips to replace the use of resident registration numbers by January.

The third revision says that all mobile carriers must get permission from customers before providing them with the payment service. Companies currently sign up customers automatically when they open up an account.


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