Today I want to talk about an issue that you would hear a lot these days, ‘Voice Phishing’. Do you all know that the word ‘phishing’ is a compound of ‘Private data’ and ‘Fishing’? For today, I am telling you the extent of damages occurred by voice phishing and how the FSC has responded to it so far. Moreover, I am introducing you a new measure against voice phishing, which is ‘Joint Alert System’ by FSC, FSS (Financial Supervisory Service) and National Police Agency.
What has been done so far? Take a look at FSC’s continuous effort against voice phishing
(Listed in a chronological order)
- Tightened SMS confirmation system on card loans (December, 2011)
- Deferred transfer on card loans; for the amount over KRW 300 million, transfer is delayed for 2 hours on purpose (May, 2012)
- Deferred withdrawal; for the amount over KRW 300 million, withdrawal is delayed for 10 minutes on purpose (June, 2012)
- Strengthened confirmation process for reissuance of an authentic certificate (November, 2012)
As you can see from the list above, FSC has tried to improve its regulatory measures to prevent further damages by voice phishing. As a result of it, a constant supervision was possible. So far, 9,722 criminals were arrested, and 314 of them were imprisoned.
Within this year, there have been 4,642 voice phishing cases reported. They amount to damages of KRW 50 billion. Even though this figure is still huge, this is much lower than that of last year. Especially, in cases of card loans, there is a sharp decrease from 70 cases to 40 cases on a monthly basis. Furthermore, the victims of voice phishing were granted compensation worth of KRW 25 billion in total.
Then, what is a facing problem? New methods of voice phishing are getting even more diversified and sophisticated. For example, criminals lead people to a fake website, and capture personal details and financial information. The other example is that criminals use a computer bug to deceive users.
Against those new tricks, FSC plans a ‘Joint Alert System’ in cooperation with FSS and the National Policy Agency. The purpose of this measure is building a system to issue and spread voice phishing alert more quickly through various channels.
How will the ‘Joint Alert System’ work?
- Monitoring voice phishing; monitoring all voice phishing cases and closely observing suspicious signs
- Judging whether to issue an alert; holding a swift discussion between FSC, FSS, and the National Policy Agency, if the criteria for alert issuance are met
- Issuing the alert; spreading it through all the possible channels
When spreading out the alert, the responsible agents will publish press releases, upload information on financial companies’ web pages, make an announcement through SNS, and locally broadcast the issuance.
We expect that this new system prevents new methods of voice phishing in much quicker way. Since the system is jointly maintained by three entities, a more precise and close monitoring will be enabled. They are planning to create a model standard for issuing an alert by the end of November, and to implement the system in December.
This is for today, as a part of changes announced by Financial Services Bureau. For the next post, the issue will be on ‘Permission on Insurance Companies’ which is the other part of Financial Services Bureau’s announcement. Please stay tuned!