KR: Credit card companies fined over customer data protection failures

For the past few years, I’ve covered the consequences KookminNongHyup, and Lotte Card have faced after cardholders’ information was stolen by an contractor’s employee over an 18-month period from 2012 to 2013.  I continue to be impressed that even though some of the fines or consequences haven’t been huge by our standards, there have been consequences to both the firms and the executives.  As I’ve reported in the past, firms were not allowed to sign up new customers for a three-month period (costing them up about $117 million in lost revenues), and executives faced firing and a ban on working in the financial sector for five years.

On top of penalties for the firms and executives, the courts also ordered customers compensated.  And now, as the Korea Herald reports today:

The Seoul Central District Court ordered KB Kookmin Card and NongHyup Bank to pay 15 million won (US$13,000) each and Lotte Card to pay 10 million won in fines.

The court said KB Kookmin Card and NongHyup Bank received aggravated penalties as they are responsible for two leakage occasions each, whereas Lotte is only liable for one incident.

The companies are responsible for not taking necessary measures in advance, making it possible for the employee, identified only by his surname Park, to leak some 140 million copies of customer information, it said.

Read more on Korea Herald.

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