"KT to Block 'Small Payment Fraud'"… 'PASS Authentication' Mandatory for Gift Card Payments from the 12th (The Controversy?)

"Following a series of 'small payment' frauds, KT has finally drawn its sword."

Starting this 12th, when KT customers purchase 'gift cards' using mobile small payments, only 'PASS app authentication' will be possible. This measure aims to fundamentally block the recently surging fraud by completely preventing authentication via phone calls (ARS) or text messages (SMS). But, will it be effective?

Why the Change?… 'ARS Authentication' as a Crime Gateway

KT's current measure follows its internal investigation into 278 cases of small payment fraud, totaling approximately ₩170 million.

"Upon identifying 278 cases of small payment fraud internally, it was found that all were authenticated via ARS." (KT Senior Official)

This suggests that criminals exploited the vulnerability of 'ARS authentication'. KT determined that 'PASS authentication', which requires additional fingerprint or PIN input, is the strongest security measure and decided to standardize the authentication method for gift card payments only.

But… Claims that 'PASS was also Breached'?

The problem is that some of the existing victims claim that "they suffered damage even though they used PASS authentication." KT rebutted these claims as follows:

"Possibility of customer 'misconception'": "General customers sometimes mistake text or ARS authentication for PASS itself."
"No signs of PASS compromise": "To date, there is no evidence that the PASS app itself has been compromised or manipulated."

How to Protect 'Your Money'… Consumer Responsibilities

Regardless of KT's security enhancements, the most certain way for consumers to protect themselves remains valid.

"The most definite preventive measure is to immediately set your 'small payment' limit to '0 KRW' or 'completely block' it through the KT Customer Center (114) or the 'My KT' app!"

Consumer Anxiety Amidst 'Truth Debate'

It remains to be seen whether KT's latest measure will be a case of 'closing the barn door after the horse has bolted' or a 'stroke of genius' to eradicate fraud. However, as a 'truth debate' unfolds regarding the safety of 'PASS authentication', it's crucial to remember that the most secure protection lies in 'self-settings'.

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"KT to Block 'Small Payment Fraud'"… 'PASS Authentication' Mandatory for Gift Card Payments from the 12th (The Controversy?)