KT and LG Uplus "Voice Phishing Detection Service"
Passes Personal Information Commission's Prior Adequacy Review
Service Implementation Accelerates Following SK Telecom and IBK
The "voice phishing detection service in partnership with financial institutions" offered by KT and LG Uplus has passed the Personal Information Protection Commission's prior adequacy review. Including SK Telecom, which completed its review in September last year, all three major domestic mobile carriers are now able to implement this service without difficulty.
On July 10, the Personal Information Protection Commission announced that it had reviewed and approved the results of KT and LG Uplus's prior adequacy review for this service at a plenary meeting held the previous day. The commission presented and discussed measures with both companies to strengthen user protection and prevent misuse of personal information, and stated that it will monitor whether these measures are implemented once the service launches.
This service utilizes the call records of subscribers from the two telecom companies to predict suspected voice phishing numbers and supports financial institutions in detecting and blocking suspicious transactions. The aim is to predict the possibility of phone scams even from numbers that have not yet been identified by investigative authorities. In May, KT and LG Uplus signed a business agreement with the Korea Federation of Banks to eradicate voice phishing.
First, each telecom company develops an artificial intelligence (AI) model that learns the call and message patterns of voice phishing numbers shared by investigative agencies and other organizations. Using this, they identify other phone numbers with patterns extremely similar to known voice phishing numbers and build a "voice phishing suspected number database (DB)."
When a financial institution suspects a customer may be a victim of voice phishing, it inquires with the telecom company to check whether the customer has recently communicated with any suspected numbers. Based on this information, if a transaction is determined to be actual voice phishing, the financial institution takes actions such as blocking the transaction. In addition, cases where the telecom company incorrectly identifies a number as suspicious are reported back and used to improve the AI model. All inquiries and responses between telecom companies and financial institutions are handled through the intermediary, Korea Credit Bureau.
The Personal Information Protection Commission instructed KT and LG Uplus to operate the service solely for the purpose of preventing voice phishing damage and to clearly notify users so they can fully understand how their personal information is processed. The commission also requested that after signing a personal information processing consignment contract with the intermediary, the companies supervise and manage whether the database is used securely. Financial institutions are also required to access the database only when it is in line with the stated purpose.
A representative from the Personal Information Protection Commission stated, "Many financial institutions will now be able to use this service through the three major domestic mobile carriers. It is significant in that the vast majority of citizens will be able to benefit from more advanced services to prevent financial fraud."
The representative added, "We will continue to establish appropriate legal application measures for personal information processing environments through the prior adequacy review system, and proactively prevent factors that could infringe on personal information. We will also actively support the safe use of personal information by resolving uncertainties in the field during the planning of new services and technologies."
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