Shinhan Financial Group Subsidiaries Now Allowed to Share Information on Suspected Voice Phishing Transactions

Financial Services Commission Approves Designation of Innovative Financial Service

On September 17, the Financial Services Commission held its 16th regular meeting and approved the designation of an innovative financial service that will allow Shinhan Bank, Shinhan Card, Shinhan Investment, and Shinhan Life Insurance, all subsidiaries of Shinhan Financial Group, to share customer information when detecting suspected voice phishing transactions.

Currently, financial institutions use the Fraud Detection System (FDS) to detect accounts suspected of being involved in voice phishing crimes, restricting transfers or suspending transactions. However, unlike accounts confirmed to be used for fraud, there is no legal basis for sharing information about accounts merely suspected of being victimized, making it impossible to share information immediately between financial companies. This has been a particular issue for financial holding companies, where customers may use common bank accounts across subsidiaries, but sharing customer information detected by the FDS has been restricted.

With this measure, subsidiaries within Shinhan Financial Group will be able to share customers' financial transaction information in real time when suspected voice phishing transactions are detected. Subsidiaries receiving such information will be able to take active measures, such as strengthening customer verification or suspending transactions. The Financial Services Commission explained that this joint response by the financial group will enable unified temporary measures against simultaneous voice phishing incidents, thereby enhancing customer protection by financial institutions.

However, to prevent the scope of shared voice phishing information from becoming excessively broad, the information to be shared will be limited to only what is essential for preventing voice phishing. In addition, when information is shared, the relevant data subjects must be notified on a quarterly basis-via text message or other means-of the timing and reasons for the information sharing as an additional condition.

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