Improved Standards for Sharing Responsibility in Voice Phishing Cases to Be Implemented in Banking Sector from Q3

Establishment of Standard Processing Period... Discussions on Introducing Facial Recognition
Banks Compensate 170 Million Won Over 16 Months Since January Last Year

The Financial Supervisory Service announced on May 29 that it has prepared measures to improve the standards for sharing responsibility related to voice phishing and smishing in the banking sector, and plans to implement them starting from the third quarter of this year.

According to the Financial Supervisory Service, banks and secondary financial institutions currently compensate victims for a portion of financial losses caused by voice phishing and smishing on a voluntary basis, following the 'Standards for Sharing Responsibility in Non-Face-to-Face Financial Accidents.'

In the case of banks, from January last year to last month?a period of 16 months?they conducted 2,244 consultations and received 433 applications for compensation. Through this process, a total of 41 victims were compensated, with the total amount paid reaching 168.91 million won. This represents approximately 18% of the total losses returned to victims.

The Financial Supervisory Service determined that the current voluntary compensation system is insufficient. Therefore, at the end of last month, it discussed directions for system improvement with Chief Consumer Officers (CCOs) from the banking sector.

During the third quarter, the Financial Supervisory Service, together with the banking sector, will establish and implement improvement measures such as revising the standards for sharing responsibility, introducing a standard processing period, and strengthening public awareness efforts.

When determining a financial company's liability for compensation, the standards for sharing responsibility will be improved to objectively reflect both the advancement of the Fraud Detection System (FDS) and any shortcomings in response measures.

The Financial Supervisory Service also plans to regularly consult with the financial industry regarding the introduction of systems for facial and biometric recognition, as well as the implementation of original and copy ID verification and authenticity determination systems.

A standard processing period will be set to speed up compensation decisions. The Financial Supervisory Service will promote the new system through its own website and those of relevant industry associations, and will encourage financial companies to expand mobile channels for compensation applications.

The Financial Supervisory Service urged consumers to immediately report any financial accidents, such as unauthorized transfers, to the integrated reporting center, request a payment suspension, and then apply for voluntary compensation from their financial institution.

An official from the Financial Supervisory Service stated, "If there is a delay in reporting, it may negatively affect the calculation of compensation amounts, so it is important to report the incident and request a payment suspension as soon as you become aware of it."

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