Coupang Data Breach Exposes Structural Security Flaws in E-commerce
A recent hacking incident at Coupang has sparked major controversy in South Korea, raising serious concerns about the overall cybersecurity standards in the e-commerce industry. The breach potentially exposed the personal data of over 33.7 million users, dealing a heavy blow to consumer trust. This was not a mere case of information leakage; rather, it revealed fundamental vulnerabilities in data protection architecture. Given the nature of commerce platforms where transaction history, delivery addresses, and payment methods converge, any data breach can result in extensive and far-reaching damage.
Coupang Data Breach Began with a Leaked Signing Key
The core issue was the external leak of an internal security key, known as a signing key. This key is critical for generating login tokens. By obtaining it, attackers could forge legitimate-looking tokens, impersonate users, and gain unauthorized access to their accounts.
To make matters worse, Coupang’s user IDs followed a simple numeric sequence (1001, 1002, 1003…), making it easy for attackers to guess account identifiers. In essence, once the key was exposed, any account could be accessed—much like a single master key opening every door in a building.
What Information Was Leaked in Coupang Data Breach?
According to reports, the leaked data included customer names, email addresses, mobile phone numbers, delivery addresses, and even additional delivery details saved in address books. Some order histories were also compromised.
Fortunately, sensitive financial data like credit card numbers, bank account information, and login passwords were encrypted and remained protected. However, under South Korea’s current Personal Information Protection Act, only specific categorieslike payment and national ID numbers are required to be encrypted. This means that most of the leaked data—names, addresses, emails, phone numbers, and purchase records—were not legally mandated to be encrypted.
Why Does This Matter?
Individually, such information might not seem dangerous. But when combined, it can paint a detailed picture of a person’s lifestyle and social relationships. Order histories, for example, can reveal household composition and daily routines. When linked with names, phone numbers, and addresses, this data becomes a powerful tool for spear phishing or even physical crimes.
Moreover, if the same user has previously had financial data leaked on another platform, attackers could use these datasets together in a re-identification attack, pinpointing the exact individual behind the data.
The Real-World Challenges of Expanding Encryption
Cybersecurity experts agree on the urgent need to broaden the scope of mandatory encryption. However, in practice, encrypting data that is not legally required is often a low priority for companies.
One security officer from the retail industry shared that, despite repeated attempts to implement encryption, the initiative was deprioritized within the IT department. Unless backed by legal mandates or incentives, companies tend to focus on other tasks.
Speed Is No Longer a Barrier to Encryption
Many companies fear that encryption will slow down their services. However, this concern is increasingly outdated. With mature solutions like D.AMO by Penta Security, organizations can implement encryption across all layers of their IT infrastructure (OS, DB, Application) with minimal performance impact.
D.AMO allows businesses to customize encryption environments to optimize both performance and security. According to a white-hat hacker, “Encryption speed concerns are a thing of the past—companies like Apple already encrypt all personal data by default.” Similarly, a security lead from a retail firm emphasized, “The performance impact of encryption has significantly improved. Even if some delay remains, the right solution can mitigate it. Ultimately, enhancing encryption protects both consumers and businesses.”
D.AMO: A Leading Encryption Platform for Scalable Security
D.AMO, developed by Penta Security, is a leading encryption platform designed to secure all types of data, structured and unstructured, across various IT environments. It supports system-wide implementation, from operating systems and databases to applications.
D.AMO KMS (Key Management System) stores encrypted data and the encryption/decryption keys separately, effectively eliminating the risk of data leakage. Through D.AMO Control Center, it integrates with multiple security systems and offers centralized key management, ensuring scalability and compatibility.
Importantly, D.AMO can be deployed without halting existing systems, providing a practical solution for companies looking to strengthen data protection without disrupting operations.
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