Subscribe
News
|
Interviews
|
Voice of the Industry
|
Watch & Learn
|
Reports
Cross Border Ecommerce Research
Company Database
|
Events
Facts & Figures
|
Payment Methods
|
Fraud Prevention
|
Service Providers
Facts & Figures
|
Payment Methods
|
Fraud Prevention
|
Service Providers
Select a country in
- choose a country -
Online Fraud Prevention in
Republic Of Korea
Ecommerce fraud and online fraud prevention in Republic Of Korea
Read below about payment fraud, online fraud and fraud prevention Republic Of Korea
Download report on Cross-border Ecommerce - republic-of-korea
Download report on republic-of-korea
A leading card market, South Korea is taking steps to increase payment security while ensuring that restrictions do not stifle ecommerce growth.
Payment Fraud Profile
Fraud prevention initiatives have received new impetus in South Korea following the theft of card data reported in December 2013. Estimates suggest that as many as 20 million people (40% of the population) were affected, although the extent of actual financial loss is uncertain and it would appear that passwords and CVV codes were not among the data stolen. The Financial Supervisory Service (FSS) announced new restrictions on the storage of card information following the incident and consumer trust in card-based transactions was shaken – significant in a country that is home to ‘the world’s most prolific card users’ (The Economist, November 2013).
To speed up the introduction of chip and PIN technology and replace magnetic stripe readers, in April 2014, the FSS announced that card companies will pay for EMV terminals in 650.000 small stores, enabling access to such terminals by 2015. Large stores are expected to use these chip readers by Q4 2014. The financial authorities have also recently asked card companies to provide text confirmation of transactions above a certain amount free of charge, where previously a fee was charged.
Ecommerce and Mobile Commerce Fraud Prevention
Reports indicate that South Korea has recently updated its approach to online fraud prevention, which, it was felt, was holding back ecommerce growth. Under the ‘old’ rules, a first time shopper buying goods or services online from a Korean website had to install ActiveX controls and receive an online authentication certificate. The country is now looking for a new balance between security and convenience and sophisticated online fraud prevention measures can play a crucial role in safely enabling ecommerce transactions. These measures will include cardholder authentication - all Visa members in South Korea must participate in Verified by Visa – but this needs to be combined with other fraud screening and prevention tools to ensure that genuine business is not declined.
With 45 million mobile subscribers, South Korea offers good potential for mobile commerce. South Koreans are increasingly using their mobile phones to access the internet and shop online and over 21 million of them were reportedly using shopping applications in January 2014. The mobile channel presents very specific fraud prevention challenges and requires specially tailored fraud rules to ensure that merchants see the full benefit of mobile commerce growth.
Download report on Cross-border Ecommerce - republic-of-korea
Download report on republic-of-korea
Top Stories
/
Most Read
Acheron Trading obtains a CASP licence under MiCA in the EU
Published 11:52 | World |
News
OwlTing integrates AI features into OwlPay Hrabor
Published 11:40 | United States |
News
Lloyds partners with HTS to roll out travel booking portal
Published 11:15 | United Kingdom |
News
Mashreq to offer Aani Instant Payments for SMEs
Published 10:59 | United Arab Emirates |
News
PayTabs launches Saudi-built, AI-driven payment orchestration platform
Published 10:44 | Saudi Arabia |
News
:::
more news
Data breach exposes passwords from Google and other tech giants
Published 28 May | United States |
News
X to launch X Money in partnership with Visa
Published 28 May | United States |
News
Thailand is set to allow tourists to use cryptocurrency
Published 28 May | Thailand |
News
OpenPayd to roll out stablecoin infrastructure
Published 28 May | World |
News
Worldpay and BVNK to enable stablecoin payouts for global businesses
Published 28 May | Europe |
News
:::
more news
Interviews
08:00
Beyond the buzz of BNPL – unveiling its true value
28 May
[Video Interview] From event vision to payment innovation: Damir Čaušević and Nikola Škorić on MoMo 2025
27 May
[Video interview] The future of banking: AI, innovation and agility – a conversation with Piotr Jelenski, ASEE Group
26 May
[Video interview] The future of crypto: an institutional perspective with Svetlana Sailer, Kraken
23 May
Austria's digital identity evolution: insights from Herbert Leitold, A-SIT
:::
more interviews
Voice of the Industry
10:12
The hidden complexity behind card issuing and acquiring — and why it still trips up fintechs
28 May
What's next for A2A payments in 2025 | Exclusive insights from industry experts
28 May
Riverty report key takeaways – Fintech 2040: Trajectories for the evolution of the fintech ecosystem
27 May
Fintech growth in the UAE: the development towards a sandbox environment
27 May
Cyber threats are crippling small businesses – here's how we can fight back
:::
more voices
Free Headlines
:::
subscribe now
RSS
:::
follow ThePaypers via RSS
:::
connect
LinkedIn
:::
connect with ThePaypers on LinkedIn
:::
connect
Twitter
:::
follow ThePaypers on Twitter
:::
follow
Facebook
:::
like ThePaypers on Facebook
:::
like