Kyungsillyeon "Increase in Non-face-to-face Financial Fraud Due to Faulty ID Copy Verification System"

Kyungsillyeon "Financial Authorities Focus on Victim Responsibility Rather Than Preventing Recurrence"
Urges Financial Authorities for Compensation Decisions, System Improvements, and Technical Measures

[Asia Economy Reporter Gong Byung-sun] Although non-face-to-face financial transactions are increasing, concerns have been raised that financial accident damages may occur due to fintech companies' 'ID copy authentication' systems.

On the morning of the 18th, the Citizens' Coalition for Economic Justice (CCEJ) held a press conference titled "Accusers of Financial Accident Victims Caused by Faulty Fintech Non-face-to-face Real-name Verification by Financial Companies" at the CCEJ office in Jongno-gu, Seoul.

Financial fraud damages are rapidly increasing as the ID authenticity verification process is omitted in non-face-to-face financial transactions. Unlike face-to-face transactions, financial companies must have procedures to verify the authenticity of IDs and systems to detect ID forgery or alteration during smartphone-based non-face-to-face financial transactions such as mobile banking. However, fintech companies are omitting these steps, indiscriminately photographing copies of IDs and authenticating them, leading to widespread illegal non-face-to-face real-name verification.

However, the CCEJ pointed out that financial authorities focus only on the victims' responsibility rather than preventing recurrence. The CCEJ stated, "Financial companies, financial authorities, and courts only hold victims accountable for gross negligence, and under the special law 'Telecommunication Fraud Damage Refund Act,' rapid financial companies' responsibilities for damage prevention, compensation, or debt extinguishment are not enforced," adding, "This only increases the victims' suffering."

The CCEJ, together with the 'ID Copy Authentication Victims Group,' decided to actively raise awareness in civil society about ▲ faulty non-face-to-face ID copy verification authentication systems ▲ inadequate accident response and damage refund measures ▲ complacent judgments by courts and financial authorities and neglect of damage accidents. Furthermore, they plan to urge financial authorities to implement compensation decisions, institutional improvements, and technical measures.

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