Messenger Phishing Actively Stealing Insurance Loans Without Consent... "Insurance Companies Must Strengthen Response" (Comprehensive)

Transfer to Suspicious Loan Account 'Financial Fraud'
Mandatory Recommendation for Payment Suspension and Transaction Restrictions

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[Asia Economy Reporter Oh Hyung-gil] Messenger phishing, which involves impersonating family members and others to install smartphone remote control applications or request photos of identification cards, is on the rise.

The financial authorities have recommended that insurance companies have an obligation to take measures such as payment suspension or transaction restrictions on suspicious fraud accounts when insurance contract (policy) loans are transferred to fraud accounts through messenger phishing.

As cases of funds being intercepted through various methods like messenger phishing increase, there is a call for financial companies to take proactive measures.

According to the insurance industry on the 10th, the financial authorities recently issued this legal interpretation regarding the responsibility of financial companies to prevent damage under the "Special Act on the Prevention of Telecommunications Financial Fraud and Refund of Damaged Funds (Telecommunications Fraud Damage Refund Act)."

Under Article 2, Clause 2 of the current Telecommunications Fraud Damage Refund Act, if a policy loan is taken out in the name of the victim, telecommunications financial fraud is not established.

This is because telecommunications financial fraud is defined as acts of deceiving or threatening others using telecommunications to transfer or remit money, or obtaining personal information to transfer or remit funds.

However, the financial authorities have judged that if a policy loan is taken out in the victim's name and the loan funds are transferred to a fraud-use account, it should be regarded as financial fraud. Accordingly, they interpreted that insurance companies must take measures such as payment suspension and electronic financial transaction restrictions on the holders of fraud-use accounts.

This is a response to the recent evolution of voice phishing. While the overall damage from voice phishing is decreasing, messenger phishing, which impersonates family or acquaintances, is rapidly increasing.

Fraudsters impersonate family members via messenger, requesting financial transaction information such as ID cards, account numbers, and passwords, or induce victims to install malicious applications (apps) to steal personal information. Using the leaked personal information, they create new "dapo-phones" (prepaid phones) in the perpetrator's name, open financial accounts, and withdraw money.

In particular, in cases involving insurance policyholders, most incidents involve taking out insurance policy loans in the victim's name from the insurance company and then transferring the funds back to their own accounts. This not only results in the loss of financial assets held but also often leads to the victim being burdened with large loans.

In the first half of this year, the total damage from voice phishing was 84.5 billion KRW, a 46% decrease compared to the same period last year, whereas damage from messenger phishing surged by 165% to 46.6 billion KRW. Meanwhile, damage from major fraud types such as impersonation of institutions or loan fraud amounted to 6.3 billion KRW and 31.6 billion KRW respectively, decreasing by 81% and 70% compared to the same period last year.

To prevent voice phishing damage, when personal information is requested via messenger, it is essential to verify directly by phone whether the person is indeed a family member or acquaintance. If an institution is impersonated and requests transfers, cash withdrawals, loans, or installation of remote control apps, fraud should be suspected.

A financial authority official explained, "Messenger phishing involves stealing personal information and conducting financial transactions without the victim's knowledge, so the role of financial institutions in responding is important," adding, "It is necessary to strengthen identity verification measures when canceling deposits or insurance or applying for loans."

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