Abnormal withdrawals detected from hot wallet

Financial sector-wide security review to follow

The headquarters of the Financial Supervisory Service in Yeouido, Seoul. [Herald DB]
The headquarters of the Financial Supervisory Service in Yeouido, Seoul. [Herald DB]

The Financial Supervisory Service has launched an on-site inspection of virtual asset exchange Prabank after a hack caused losses of about 100 million won ($74,800). With cyberattacks hitting other financial firms in quick succession, the regulator plans to conduct a comprehensive security review across all financial companies.

According to financial authorities Thursday, the FSS received a report from Prabank on Monday of a breach involving unauthorized external access and immediately dispatched inspectors. Investigators are currently working to determine the full extent of the damage and identify the types of virtual assets stolen.

Prabank said it detected abnormal withdrawals from its hot wallet on Saturday and activated an emergency response protocol. During a subsequent system-wide check, the company discovered security vulnerabilities. Assets lost in the incident are estimated at about 100 million won.

The incident is separate from a Prabank breach cited in the FSS's Oct. 14 announcement of findings from its review of AI-related hacking incidents in the financial sector.

The FSS also launched on-site inspections Wednesday after cyberattacks were reported at one online peer-to-peer lending firm and one electronic financial services company.

Earlier breaches in those sectors had exposed the personal data of more than 300 people at PFCT and 18,900 people at Mouda, while electronic financial services firm Brightfix also suffered a personal data leak.

However, the two firms currently under FSS inspection are believed to have had a different type of information compromised — not the personal data of employees or customers, as in previous incidents. The FSS is working through its on-site inspections to determine the exact circumstances and scope of the damage.

Online peer-to-peer lending firms and electronic financial services companies have long faced criticism for being unable to maintain adequate security personnel and systems, as many are relatively small and operating at a loss. This has raised concerns that they may be more vulnerable to hacking than larger financial institutions.

With cyberattacks continuing to strike the financial sector, authorities plan to soon carry out a full sweep of all financial companies, examining their security frameworks and management systems.


hajun825@heraldcorp.com