Samsung's United States created payment system, LoopPay has been breached by a group of hackers. LoopPay was acquired by the South Korean based tech company just last February.
The hack was not discovered until last August. According to further investigation the group behind the breach was a Chinese group of hackers. This created quite a stir between the two countries.
The incident is now being studied whether it was an act of international, possibly corporate, espionage. Although there is still a possibility that the group had no personal intentions and just hacked it for the sake of testing if the system was breach-able.
LoopPay is Samsung's company, which will launch the Samsung Pay created to compete with Apple's Apple Pay. The Codoso Group, the name of the Chinese hackers, was able to have five months access to Samsung's LoopPay network.
Samsung announced that the breach was not able to extend to the Samsung's own computer network.
"Samsung Pay was not impacted and at no point was any personal payment information at risk," Darlene Cedres, Samsung's chief privacy officer, told Mashable.
There was absolutely no breach on the personal payment information of the users of LoopPay, Samsung assuredly announced. The fact that they did not alert the police or any investigative body after realizing LoopPay's system was hacked is due to the fact that there is no need to alert any outside body, for there was any information stolen.
It seemed that the hackers were after LoopPay's Magnetic System Technology, which is working together with its wireless NFC technology.
The MST-NFC conjunction technology allows older systems that still use older magnetic stripe card-style payment to be able to use the more modern, LoopPay.
The news comes in a very bad time for Samsung, for they just launched there Samsung Pay just this week in the U.S. market.
