Credit Cards Swallowed by ATMs Can Be Retrieved via Mobile Phone Authentication

[Image source=Yonhap News]

[Asia Economy Reporter Kangwook Cho] In the future, when retrieving credit cards that were not returned due to malfunctions of Automated Teller Machines (ATMs), identity verification will be possible not only through an ID card but also via mobile phone authentication.

On the 10th, the Financial Services Commission announced that the revised Enforcement Decree of the Electronic Financial Transactions Act, which includes legal grounds for returning access devices when users obtain them due to malfunctions of automated devices by financial companies or electronic financial service providers (fintech companies), has passed the Cabinet meeting.

'Access devices' refer to a type of means (electronic card or equivalent electronic information) used for electronic devices in financial transactions. For example, when a user withdraws money from an ATM using a bankbook or card, the bankbook and card belong to access devices. One-time passwords (OTP) necessary for financial transactions also fall under access devices.

Until now, financial companies have customarily requested users to present an ID card for identity verification when returning cards obtained due to malfunctions of financial automation devices such as ATMs. However, there was no explicit legal basis allowing financial companies to request ID presentation, which sometimes led to user complaints regarding ID presentation. In response, the Financial Services Commission explained that the Electronic Financial Transactions Act has been amended to allow financial companies to verify identity by requesting ID presentation, and it is scheduled to take effect from the 20th.

According to the revised Enforcement Decree of the Electronic Financial Transactions Act, when financial companies return access devices obtained due to electronic device malfunctions/errors or user loss of access devices, they can verify the user's identity. Identity verification can be done not only through ID cards such as resident registration cards, driver's licenses, passports, and foreigner registration cards but also through mobile phone authentication.

The Financial Services Commission stated, "If new and convenient identity verification technologies emerge in the future, they will be added as identity verification methods in the Electronic Financial Supervisory Regulations."

This content was produced with the assistance of AI translation services.