“Samsung Pay was not impacted and at no point was any personal payment information at risk,” Darlene Cedres, Samsung’s chief privacy officer, said in a statement. “This was an isolated incident that targeted the LoopPay corporate network, which is a physically separate network. The LoopPay corporate network issue was resolved immediately and had nothing to do with Samsung Pay.”
The attack comes just close on the heels of Samsung pay U.S. launch and was believed to be inflicted by Chinese hackers sponsored by the government. The hackers who are reportedly called as codoso group have targeted the loopPay to get the information regarding the magnetic strip technology that powers Samsung pay.
This tech is believed to hold the key in the mobile payment system wars between google, apple and Samsung. The magnetic stripe tech allows Samsung phones to make a financial transaction on an ordinary swipe machines where as other payment systems will need the NFC enabled machines to make a transaction. Thus giving it a huge advantage over others
the codoso group attacked the forbes.com and the U.S. chamber of commences website in the past and they do it in such a way that the group will have access to the sensitive information long after the actual attack happens. But in this case, they gained unauthorized entry into the office network but could get into the production system where the actual transaction details and user information is stored.
Cyber-attacks are being conducted on large scale these days and user information is being scattered all over the dark web. But it is happy to know that no user was compromised in this case and Samsung pay continues to do well.