South Korean telecommunications giant KT is under investigation for allegedly hacking the systems of customers who used torrent services such as web hard drives (Webhard), a popular file-sharing service in the country.
The scandal, which has been ongoing for nearly five months, has affected an estimated 600,000 customers, with the police investigation revealing that KT may have operated a dedicated malware team.
Malware Infiltrated Systems of Torrenting Subscribers
The incident came to light in May 2020 when numerous web hard drives suddenly stopped working. Users flooded company forums with complaints about unexplained errors. An investigation revealed that malware had infiltrated the “Grid Program,” software that enables direct data exchange between users.
The malware, which was designed to interfere with BitTorrent traffic, was allegedly used to monitor and control the internet activities of KT subscribers. The police believe that the motive behind this hacking was to reduce network-related costs, as torrent transfers can be costly for internet service providers. KT, however, claims that it was merely trying to manage traffic on its network to ensure a smooth user experience.
KT instead stated that the Webhard services were malicious, however after the the Gyeonggi Southern District Office conducted raids on KT facilities, they believe the ISP may have violated communications and network laws. A police follow-up investigation stated that KT operated a dedicated team responsible for developing, distributing, and operating the malware program.
The hacking was traced to KT’s Bundang IDC Center, one of its data centers. Over five months, an estimated 20,000 PCs were infected daily. The malware reportedly created strange folders, made files invisible, and disabled web hard programs.
Legal and Ethical Implications
KT and Webhard companies have a history of conflict, including lawsuits. While a previous court ruled in KT’s favor regarding traffic blocking of grid services, the current situation differs significantly. KT was alleged to have planted malicious code on individual users’ PCs without consent or explanation.
South Korean legal experts question KT’s methods, suggesting the company could have pursued formal procedures through its legal team instead of resorting to hacking. The incident raises serious concerns about privacy, corporate responsibility, and the extent to which internet service providers can control network traffic.
The scandal has also raised concerns about the security of KT’s customers’ data, with many wondering what other sensitive information may have been compromised. The company’s CEO has since resigned, and the company’s reputation has taken a significant hit.
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