Lotte Card CEO Cho Jwa-jin issued a public apology Thursday after a cyberattack exposed the personal information of nearly 3 million customers, representing a significant portion of the company's user base. The company has vowed to take full responsibility, promising comprehensive compensation and a massive investment to bolster its security infrastructure.
The data breach, a result of a widespread malware infection discovered on August 26, compromised personal details for 2.97 million customers. The stolen data, totaling 200 gigabytes, included information such as connection details, resident registration numbers, and internal identification numbers. A more severe risk was identified for 280,000 customers whose sensitive information, including card numbers, expiration dates, and security codes, was also exposed. While the company stated that no actual cases of fraudulent use have been confirmed, the risk remains for fraudulent transactions if card data is manually entered.
The incident was first detected on August 26, but the true scale of the breach was not fully disclosed by the company. Lotte Card initially reported a much smaller leak of 1.7 gigabytes and claimed no critical customer information had been compromised. However, a subsequent investigation by financial authorities in September revealed the breach’s true extent, forcing the company to come clean about the 200-gigabyte data loss.
In response to the fallout, Lotte Card has announced several measures aimed at mitigating customer damage. All affected customers will be offered a 10-month, interest-free installment plan on purchases until the end of the year. Additionally, the 280,000 customers whose card data was exposed will have their annual fees waived for the following year upon card reissuance. Looking ahead, Lotte Card has committed to a five-year, 110 billion won ($79.2 million) investment to overhaul its security systems and develop in-house monitoring capabilities.
"Eliminating customer damage will be our top priority," CEO Cho stated at a press conference, adding that he would personally oversee the company's emergency response. Cho also acknowledged the need for comprehensive personnel reform, hinting at the possibility of his own resignation as a form of accountability.
[Copyright (c) Global Economic Times. All Rights Reserved.]
