Let’s look at the details of Special Act on Electronic Financial Crime Prevention and Damage Refund’, as we have already gone through the overall picture of the Act.
Here are the main provisions to be included;
1. Constituting facts of voice phishing
Currently, voice phishing is classified as fraud under the criminal law. There has been an ambiguity issue of constituting facts. For some cases, constituting facts are blurry, making it difficult to prove voice phishing activity. Accordingly, the new Act will clearly indicate constituting facts of voice phishing. Moreover, there will be provisions with regards to ‘an-attempted-voice phishing’ and ‘cumulative punishment.’
2. Financial damage refund
There are ever-increasing cases of voice phishing in forms of fake loans. Currently, the victims of those crimes are eligible for damage refund. Low-credit and low-income households have been seriously damaged a lot by those cases. The new Act will make it presidential decree to provide financial damage refund to those victims of fake loans.
3. Compulsory authentication
When applying for loan or closing an account on the internet/phone, financial companies may request authentication of the applicant via mobile phone text message (SMS). However, this authentication procedure is not compulsory, but self-imposed regulation. Considering this regulation is increasing the likelihoods of voice phishing, authentication procedures via SMS will be compulsory. Fine is to be imposed, unless financial companies carry on the process.
4. Applicable provisions
For more enhance regulation, applicable provisions will be introduced. The provisions will seek further cooperation with related authorities and international connection with international organizations dealing with financial crimes.