Samsung Says Pay is Safe, Following Hack Attempt
Samsung Electronics's new mobile-payment service Samsung Pay wasn't impacted by a Chinese hacking attack, and no customer information was lost, the company said. The attack impacted three servers of LoopPay, a startup that was acquired by Samsung earlier this year and served as the basis for its payment service.
Samsung said that Samsung Pay was not impacted and at no point was any personal payment information at risk.
"This was an isolated incident that targeted the LoopPay office network, which is a physically separate network from Samsung Pay. The LoopPay incident was resolved and had nothing to do with Samsung Pay," the company said.
The incident was related to LoopPay's office network which handles email, file servers and printing within the company. This network is physically separate from the production network that handles payment transactions and run by Samsung.
As soon as the incident was discovered, LoopPay followed their standard incident response procedures and acted immediately. LoopPay brought in two independent professional security teams. They identified and quarantined the targeted devices, conducted a thorough sweep of LoopPay?s entire system, and put additional safeguards in place.
"We're confident that Samsung Pay is safe and secure. Each transaction uses a digital token to replace a card number. The encrypted token combined with certificate information can only be used once to make a payment. Merchants and retailers can't see or store the actual card data," Samsung said.
Samsung Pay, which debuted in South Korea in August and became available in the U.S. in September, helps Samsung match a similar offering from Apple, whose Apple Pay mobile-payment service has been out for a year.