"Voice Phishing Has Surged Since Last Year... Damages May Exceed 1 Trillion Won"

Yoon Changryul, Director of the Office for Government Policy Coordination, has emphasized the seriousness of voice phishing crimes in South Korea.

On September 2, during his appearance on CBS Radio's "Kim Hyunjung's News Show," Yoon stated, "Since last year, there has been a sudden surge in voice phishing cases. As of July this year, the total damages have reached about 770 billion won, which is nearly equivalent to the entire amount lost last year. Experts predict that the total damages this year could exceed 1 trillion won."

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Yoon had previously announced a comprehensive plan to eradicate voice phishing on August 28 at the Government Complex Seoul. This is the first time in about 18 years since 2007 that the government has announced such a comprehensive plan. When the host asked whether there had been a lack of significant results during that period, Yoon admitted, "In the meantime, the methods used in these crimes have become more sophisticated, and the number of tactics has increased significantly. The government's administrative response has not kept pace with these changes."

He went on to say, "This new plan is much stronger than any previous measures. We have prepared comprehensive countermeasures covering prevention, crime response, and post-incident remedies."

Yoon explained, "In the past, it took at least two to three days to block phone numbers used in voice phishing. The process was delayed because we had to verify which telecom company the number was registered with. The newly introduced emergency blocking system allows us to temporarily and urgently block calls and text messages in cooperation with telecom companies, enabling a much faster response."

Regarding the importance of blocking phone numbers, he said, "Typically, criminals continue to contact victims using the same number in attempts to steal money. By blocking the number entirely, we can prevent further damages."

The previous comprehensive plan to eradicate voice phishing included a proposal to introduce a "no-fault liability for compensation," which would require financial companies to compensate victims for damages. The main point is to establish legislation that holds financial institutions, which are responsible for preventing voice phishing crimes, liable for compensating the losses.

When the host asked whether this meant banks would be held responsible, Yoon replied, "As I mentioned, these crimes have become so sophisticated that it is no longer possible for individuals to prevent them simply by being careful." He added, "Relevant parties must step up to prevent these crimes, and financial institutions have the technology and personnel to detect voice phishing."

He continued, "However, I believe that financial companies are not properly operating their detection systems. The intention is to have them take more responsibility in addressing the issue. As for the extent of liability and the amount of compensation, we will work closely with the financial sector to come up with reasonable solutions."

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