KT Detects 20 Unlawful Base Stations Linked to Cell Cost Breach

368 customers misplaced ₩240 million as hackers exploited rogue femtocells; regulators probe telecom safety gaps.

KT Corp., considered one of South Korea’s main telecom operators, has uncovered 20 unlawful micro base stations suspected of getting used to hold out unauthorized cellular fee breaches, widening the scope of one of many nation’s most vital telecom fraud circumstances.

The corporate confirmed that 368 customers suffered a complete lack of 240 million gained (US$169,300) by fraudulent micropayments made through its community. The discovering marks a pointy escalation from the preliminary discovery of solely 4 rogue base stations, suggesting that the breach was much more in depth and arranged than first believed.

Community-Vast Audit and Findings

KT stated it performed a sweeping inner evaluate masking 150 million cellular fee transactions between August 2024 and September 2025. Engineers additionally analyzed over 4 trillion community entry information to hint suspicious exercise from unlawful femtocells — compact base stations usually used to enhance indoor sign protection.

The investigation uncovered 20 unauthorized femtocell IDs that had accessed KT’s community, connecting with roughly 22,200 units. Of these, 368 customers skilled precise monetary injury from unauthorized micropayments.

Micropayments consult with small digital purchases made by automated response programs (ARS) or textual content messaging (SMS). KT clarified that the breach was restricted to micropayments and didn’t contain direct service billing (DCB) transactions. The corporate stated it has since blocked all suspicious fee channels as of September 5, reporting no additional unauthorized exercise.

Rogue Base Stations and Increasing Probe

Authorities stated the primary unauthorized connections had been detected in October 2024, initially in Seoul and close by areas earlier than spreading to Gangwon Province. A joint public-private investigation workforce later recognized further unlawful base station IDs, indicating a bigger and coordinated operation focusing on KT’s community infrastructure.

These rogue base stations, or pretend femtocells, acted as imposters of KT’s reputable community, tricking close by smartphones into connecting robotically. As soon as linked, hackers reportedly initiated unauthorized micropayments, later changing them into money by intermediaries.

Arrests and Ongoing Investigation

Police have arrested two Chinese language nationals believed to be behind the operation. A 48-year-old suspect allegedly drove round Gwangmyeong and Seoul’s Geumcheon District, working unlawful transportable base stations throughout early morning hours to seize cellular connections.

A 44-year-old confederate is accused of laundering round 200 million gained (US$141,000) by changing fraudulent fee information into money and transferring many of the cash to China. Each had been charged below Korea’s Info and Communications Community Act and Fraud Prevention Legislation.

Authorities say the investigation is ongoing, with efforts to establish extra victims and decide whether or not the community of unlawful base stations extends past KT’s system.

Discrepancies in Sufferer Experiences

KT has acknowledged 362 victims, whereas police have recognized round 220, with variations attributed to knowledge verification strategies. Officers stated the quantity might rise as extra customers come ahead and as investigators reconcile information from KT, telecom regulators, and fee platforms.

KT stated it has shared the outcomes of its audit with the Private Info Safety Fee (PIPC) and apologized for the delay in its investigation. “We’ll proceed to completely cooperate with the federal government and police of their ongoing investigation,” the corporate stated in a press release.

Telecom Safety and Encryption Below Scrutiny

The breach has renewed debate over telecom community safety, particularly concerning SMS-based fee programs. KT has confronted criticism for allegedly failing to encrypt SMS messages utilized in micropayment authorization, which might have allowed attackers to intercept or spoof transaction knowledge.

Though KT declined to touch upon encryption-related questions, citing the continued probe, cybersecurity specialists say the case underscores a long-standing subject in Korea’s telecom ecosystem — weak encryption practices and outdated safety fashions that depart fee processes weak to exploitation.

Regulatory Response and Subsequent Steps

The PIPC and the Ministry of Science and ICT have launched joint inspections into KT’s knowledge safety measures and telecom operators’ compliance with encryption and reporting requirements. Regulators are actually reviewing whether or not stricter monitoring and real-time reporting necessities ought to be imposed on telecoms dealing with cellular funds.

Analysts say the KT breach highlights the rising overlap between telecom infrastructure and monetary programs. As cellular billing turns into extra built-in with on-line commerce, telecom companies are more and more seen as custodians of monetary belief, not simply connectivity suppliers.