July 8, 2019

7-Eleven Japan Co. temporarily shut down its mobile payment app last week after it was hit by a data breach that impacted about 900 customers resulting in about $506,000 in fraudulent transactions, according to a company release issued in Japan.

The company said it received a customer inquiry on July 2 regarding unauthorized charges. After investigating the incident, the company discovered that hackers breached certain accounts that use the 7pay app, which uses a barcode scanner.

The hackers apparently accessed the user account, impersonated the authorized user and made fraudulent purchases on the card that was stored on the app, according to the release. Officials apologized for the breach. 

Officials said customers will be compensated for the charges and the breach will be thoroughly investigated. A customer support emergency number has been set up to help customers impacted by the breach.

Two Chinese men were reportedly arrested in connection with the breach and government regulators told the 7-Eleven operator in Japan that they failed to take the necessary steps to secure the app. 

Photo courtesy of iStock.

Topics: Mobile Apps, Mobile Payments, Security

Companies: 7-Eleven

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July 8, 2019

Photo courtesy of British Airways

British Airways has been fined $229 million (183 million British pounds) by the U.K. Information Commissioner's Office for a September 2018 data breach, the airline and regulator said in separate announcements. 

British Airways announced in a disclosure to the London Stock Exchange that the ICO would fine the airline under the U.K. Data Protection Act. The carrier apologized to customers, but expressed disappointment in the fine and said it would appeal the case. 

"We are surprised and disappointed in this initial finding from the ICO," Alex Cruz, chairman and CEO of British Airways, said in the filing. "British Airways responded quickly to a criminal act to steal customers' data. We have found no evidence of fraud/fraudulent activity on accounts linked to the theft."

The ICO, in response to the BA filing, said that personal data of 500,000 BA customers was compromised during the incident, which is believed to have begun in June 2018 when user traffic was diverted from BA to a fraudulent website. 

The ICO investigation found that a variety of information was compromised, including names, addresses, login information, payment data and other information. The ICO has been the lead agency in the investigation, in which BA violated the General Data Protection Regulation. 

"People's personal data is just that — personal," Elizabeth Denham, ICO commissioner, said in the announcement. "When an organization fails to protect it from loss, damage or theft, it is more than just an inconvenience."

She said the law is clear that entities that are entrusted with personal data must look after it. 

"Those that don't will face scrutiny from my office to check that they have taken appropriate steps to protect fundamental privacy rights," she said in the announcement. 

Topics: Mobile Payments, Region: EMEA, Security

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July 8, 2019

Soldo app and prepaid Mastercard for corporate expense management

Soldo, a London-based fintech specializing in expense management, announced today that it raised $61 million in Series B funding led by Battery Ventures and Dawn Capital, to expand into new markets and hire additional employees, company officials said.

The funding round includes participation from Accel, Connect Ventures and Silicon Valley Bank. The company said it previously raised $11 million in funding in 2017, led by Accel. 

The funding will be used to expand the company's sales team in the U.K., Italy and Irish offices and explore additional European markets. 

Late last week, the company announced that it obtained an e-money license from the Central Bank of Ireland in a precautionary move against Brexit.  

"The e-money license from Ireland enables Soldo to operate its services smoothly during a time of unprecedented turbulence in the business and political sphere and demonstrates the company's commitment to providing uninterrupted enterprise level financial technology services for businesses of all sizes," founder and CEO Carlo Gualandri told Mobile Payments Today via email. "With the license, the company will be able to issue payments in Ireland across the European Union under passporting rights."

Cover photo courtesy of Soldo.

Topics: Card Brands, Mobile Apps, Region: EMEA, Regulatory Issues

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