Winter seems to stay here with us a bit longer. Cold weather goes on, and I hope all of us are taking care of ourselves.
Today’s topic is about ‘voice phishing’ and ‘borrowed-name bank account’. I guess you have already heard a lot about voice phishing these days, but might be wondering what ‘borrowed-name bank account’ is. As its name is self-explanatory, an actual user of account is not the account holder. A user ‘borrows’ someone else’s name to open bank account. Of course, it is illegal activity, as making transaction record under certain name untraceable. Accordingly, Financial Services Commission (FSC) and Financial Supervisory Service (FSS) are trying their best to eradicate those illegal activities. Voice phishing is one of the financial crimes most widely committed by using those bank accounts.
We need to find out how criminals open those bank accounts under some else’s name. There are many people selling their name to be used for opening those fake bank accounts. First, there are some socially vulnerable and unstable people selling their names in return for small margins. Second, people urgently in need of money sell their names. Lastly, there are even some people who are ‘specialist’ in this area dealing with illegal activities. Actually, this ‘specialist’ group grows larger, meeting demand for those bank accounts and distributing them.
In 2011, it was reported that the number of borrowed-name bank accounts was 43,268. Despite having suspended those accounts, the financial crimes using those fake accounts are growing day by day. Responding to this serious issue, FSS announced comprehensive countermeasures to eradicate those financial crimes.
The financial authorities are now monitoring accounts suspicious of borrowed-name bank accounts. This issue should be seriously perceived, since this financial crime causes lots of financial damages for people having sold their names for bank accounts. Once bank accounts under their names are used for fraud or crime, there will be lots of disadvantages and inconvenience involved with financial transactions. Along with financial authorities’ efforts, individuals are asked to acknowledge how serious this issue is. The illegality of this issue should never be underestimated.