Cyber Attacks Target Financial Sector: iM Bank and Baro Savings Bank Hit by Malware

This year, iM Bank and Baro Savings Bank have confirmed incidents of malware infections. As cyberattacks targeting financial institutions continue, concerns are rising about an increase in electronic financial breaches.

According to data submitted by the Financial Supervisory Service to Rep. Park Jun-tae of the ruling People Power Party, iM Bank experienced an attack on August 28 that exploited vulnerabilities in its abnormal transaction detection system (FDS) due to malware infection.

Baro Savings Bank reported a malware infection on April 12 that led to the leakage of employee information. However, neither incident resulted in service disruptions or customer data breaches.

From January 2024 to the end of August this year, a total of 14 electronic financial breaches have been reported to the Financial Supervisory Service. Among these, banks accounted for the highest number, with six incidents, followed by four in insurance, two in specialized credit finance, and one each in securities and savings banks.

In the banking sector, SC Bank suffered two hacking incidents targeting security vulnerabilities on January 16, 2024, and May 16 of last year. iM Bank also faced a security vulnerability attack on November 24, 2024.

There have been cases of attacks that disrupted services or hindered access. Woori Bank experienced delays in internet banking access at its overseas branches due to a denial-of-service attack in February 2024, and in October of the same year, KB Kookmin Bank's banking login service was similarly affected.

In the securities sector, Nomura Financial Investment was infected with malware in May of last year, preventing some employees from accessing the system.

Insurance companies have also faced attacks. KB Life Insurance and Mitsui Sumitomo Insurance were both targeted by hacking attacks exploiting security vulnerabilities, while AXA General Insurance experienced a denial-of-service attack in August of last year that rendered its website inaccessible.

Seoul Guarantee Insurance suffered a ransomware infection in July of last year, causing server issues that halted services for 64 hours and 31 minutes. The compensation paid to consumers due to this incident amounted to 11.91 million won.

In the specialized credit finance sector, the scale of damage was even greater. Lotte Card experienced a malware infection in August of last year, resulting in the leakage of credit information for 2.97 million customers. Hana Card faced delays in accessing its Hana Money service due to a denial-of-service attack in June of last year.

As of the end of August this year, six breaches have occurred in the electronic financial sector. In August, both Toss Payments and CoPayments experienced hacking incidents that exploited security vulnerabilities, with Toss Payments reporting the leakage of 2,671 customer records.

Financial authorities have continuously urged financial institutions to strengthen their information security systems, but concerns are growing as cyberattack methods become increasingly sophisticated. Following a series of hacking incidents that began with Shinhan Bank last month, the impact has spread beyond major commercial banks to savings banks and the capital sector, prompting a comprehensive response from authorities and the industry.

Rep. Park Jun-tae emphasized, "Financial authorities should not merely repeat calls for enhanced security but must thoroughly examine the causes of breaches and the vulnerabilities in the financial sector's security systems. As attack methods, including automated hacking using AI, evolve rapidly, a proactive response system must be established rather than relying on post-incident recovery measures."