Toss, "Full Compensation for Identity Theft or Voice Phishing Victims"

[Asia Economy Reporter Kim Min-young] From now on, if you suffer financial damage due to voice phishing or identity theft through the Toss application (app), Toss will fully compensate you.

Viva Republica, the operator of the mobile financial service Toss, announced on the 6th that it will implement the "Full Customer Damage Responsibility System" to protect against identity theft and voice phishing damages occurring through Toss.

This responsibility system by Toss is the first customer protection policy implemented among domestic financial companies and fintech (finance + technology) firms. Even if Toss is not directly responsible for identity theft or voice phishing damages, Toss will provide relief for financial damages that occur through its service.

The protection scope covers financial damages caused by remittances, payments, withdrawals, etc., resulting from third-party identity theft and voice phishing. A Toss official explained, "Users can report to Toss within 30 days after the problem occurs and receive compensation for the damage amount after internal procedures."

Typically, in cases of identity theft through illegal mobile phone activation, customers have no opportunity to receive compensation until the actual culprit is identified. With this policy, Toss enables victims to receive relief first before determining responsibility through a third party. It is also significant that this is the first time a financial service operator proactively compensates for voice phishing damages.

However, identity theft cases where the account holder voluntarily shares login passwords, digital certificates, or access information with others, or where family members or acquaintances commit the theft, are excluded from protection. Additionally, damages caused by the user's intentional or gross negligence in voice phishing cases are also excluded.

This is a preemptive measure following the financial authorities' announcement of legal amendments requiring financial companies to take responsibility for consumer damages such as voice phishing. Toss plans to enhance its Fraud Detection System (FDS) using machine learning technology based on various cases received through this customer protection policy to minimize related damages. As this is a newly implemented system, Toss will supplement the policy if new considerations arise.

Lee Seung-geun, CEO of Toss, stated, "Financial transactions on Toss should be perceived as safe as face-to-face services. The entire Toss team deeply agrees that true customer centricity means taking full responsibility for incidents occurring through Toss, including financial fraud, which led to the implementation of this policy." He added, "Unlike overseas where financial companies bear certain responsibilities for theft or fraudulent transactions, active customer protection policies have not been applied domestically despite the advanced state of electronic financial transactions. We are honored to start a global-level customer protection policy covering extensive customer damages including voice phishing, and we will do our best to ensure it is well established."

Meanwhile, Toss has launched a Customer Protection Center website to help users resolve security-related questions and quickly report damages. Users can conveniently report incidents through the 24-hour operating Toss Customer Center or this website. Toss plans to monitor suspicious transactions 24/7, establish an organization responsible for customer protection measures, and expand specialized personnel.