Hackers affiliated with the Chinese government have breached the computer network of the mobile wallet outfit at the centre of Samsung Pay, according to the New York Times. Ltd. (SMSN.L, SSNNF.OB, SSNLF.OB) clarified that its mobile payment system Samsung Pay is safe, secure and works nearly anywhere.
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The South Korean firm said Samsung Pay was operated by its own mobile division and was on a physically separate network to LoopPay’s, giving the hackers no access to user data or other core information. According to Will Graylin, LoopPay’s chief executive and co-general manager of Samsung Pay, the hackers broke into Loop Pay’s corporate network, but could not penetrate the system that deals with payments. It’s kind of insane that it took the big red carrier this long to announce support for the service, but at least Verizon customers finally know that they’ll be able to use Samsung Pay.
Samsung said its payment system “was not impacted and at no point was any personal payment information at risk”. The world’s top smartphone maker hopes the convenience provided by the payments system can help it defend shrinking market share and margins.
Samsung responds to a report about the hacking of LoopPay, a company acquired by Samsung earlier this year. Transactions on Samsung Pay use unique digital tokens which can be used only once to make a payment.
The apparent target of the breach was LoopPay’s technology. With Loop Pay, Samsung Pay can be used at over 10 million retailers globally.
The company is working with two forensic teams on the breach but has not contacted law enforcement.
The attack was carried out by Chinese groups known as “Codoso Group” or “Sunshock Group” and it could have started in March 2015. He added that such action would likely be moot, because it assumes that major banks and credit card companies would be willing to do business with the copycat.
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Samsung Pay was officially launched in the United States on September 28 after the beta trial of the service, which began on August. 25.
