Over the weekend, Ctrip.com, one of China’s leading travel sites, fixed a loophole in its website that could lead to leaks of users’ identification number and other detailed payment information such as bank account numbers.
The loophole has exposed the big risks of online payments at a time when the central bank is strengthening its monitoring of Internet financing. It is necessary for the authorities to take action. The four major Stateowned banks cut their daily limits for fast payments for debit cards on third-party payment systems to 5,000 yuan ($806) from the previous 50,000 yuan last weekend, in order to protect personal information and account security.
However, the authorities should only aim at regulating the emerging Internet finance industry rather than dealing a death blow to the newborn sector. Many have attributed the suspension of the use of virtual credit cards and QR-code payments to the “revenge” of traditional banks, since they are losing market share.
Hence the authorities should strengthen monitoring on Internet financing to protect users, while respecting their rights to choose the financing products.