Samsung Says Mobile Payments Safe After LoopPay Hack
- Thursday, October 8th, 2015
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Samsungs recently launched mobile payments platform Samsung Pay is safe, the company has announced, despite a hacking attack on LoopPay, its subsidiary company that developed key elements of the Samsung Pay technology.
The revelation of the attack comes less than two weeks after Samsung Pays launch in the US, but the actual breach took place in March, when a group of Chinese hackers gained access to three of LoopPays servers.
While the attack wasnt discovered until August, Samsung has stated that the compromised servers did not store any sensitive information, and that Samsung Pay is operated by its own mobile division on a separate network, giving the hackers no access to any user data or any other core information.
“Samsung Pay was not impacted and at no point was any personal payment information at risk,” said a Samsung spokesperson in a statement. “This was an isolated incident that targeted the LoopPay office network, which is a physically separate network from Samsung Pay.”
According to LoopPay executives, the hacking attack was centred on finding details of the companys Magnetic Secure Transmission technology, a central element of Samsung Pay that enables the platform to be used on older payment systems by emulating the magnetic stripe of a credit card.
Despite Samsung assuring the public that its mobile payments system is secure, the attack could well slow adoption of the platform as rival services like Apple Pay continue to grow in popularity.