October 8, 2004

Korea: Duplicate Phones Used to Buy Online Goods

Personal information gathered from 1,700 cell phone subscribers was stolen from two agencies of KTF, the nation's second-largest mobile carrier, reports Digital Chosunilbo.

"The stolen information was then used to make so-called twin phones, duplicate phones that can be used for purchasing goods on the Internet. The cost to original cell phone owners who had their numbers stolen is estimated at W100 million ($12 million)

The Cyber Terror Response Center of the National Police Agency arrested on Tuesday a cell phone salesman identified as Cho and a part-time employee identified as Im, on charges of selling customers' personal information.

Personal information and ESN codes stored on cell phones are needed to duplicate cell phones. According to police, Oh and his accomplices duplicated cell phones with the personal information stolen from the two agencies and with the ESN codes leaked from a handset manufacturer.

Oh first purchased rice and other necessities through an online shopping website, with the duplicated cell phones. He then resold those goods on an auction website for W100 million, said the police. Purchased goods were charged to original subscribers."

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