[Exclusive] First TF Meeting to Prevent Financial Fraud with 'Participation of All Financial Sectors' to Be Held (Comprehensive)

Government to Hold First TF Meeting on 24th Following Announcement of Comprehensive Measures to Eradicate Voice Phishing
Major Banks, Internet-Only Banks, and Easy Payment Providers All Mobilized

[Asia Economy Reporter Park Sun-mi] All financial sectors and the Financial Security Institute are gathering together for the first time to collaborate on preventing voice phishing. This is the first event following the government's announcement of the "Comprehensive Plan to Eradicate Voice Phishing" at the end of June, which called for strengthened responses across all stages including prevention, blocking, and punishment of voice phishing.

According to the banking sector on the 21st, the first official meeting of the "Financial Sector Abnormal Transaction Detection System (FDS) Advancement Task Force (TF)" organized by the Financial Security Institute is scheduled to be held on the morning of the 24th at the Yeouido Financial Investment Center.

The Financial Security Institute recently sent official invitations to attend the first FDS advancement TF meeting not only to the five major banks?Shinhan Bank, KB Kookmin Bank, Woori Bank, Hana Bank, NH Nonghyup Bank?but also to regional banks such as DGB Daegu Bank and Gyeongnam Bank, as well as internet-only banks and simple payment service providers including KakaoBank, K Bank, Kakao Pay, and Naver Financial. This meeting, where all financial sectors and the Financial Security Institute come together after the TF’s launch to prevent financial fraud such as voice phishing, is a follow-up measure to the government's announcement of the "Comprehensive Plan to Eradicate Voice Phishing."

What Will Be Discussed at the First TF Meeting?

The meeting will discuss the background for promoting the FDS advancement TF, its composition, and operational plans. Given the urgent need to devise countermeasures against voice phishing, the Financial Security Institute decided to limit participation to one representative per company despite the ongoing COVID-19 pandemic risk.

The Financial Services Commission has mandated the establishment and advancement of FDS so that financial companies can actively monitor suspicious financial transactions related to voice phishing. Accordingly, the FDS advancement TF was formed under the leadership of the Financial Security Institute in mid-last month. Utilizing FDS allows for the suspension or delay of suspicious voice phishing financial transactions. The use of new technologies such as big data and artificial intelligence (AI), as well as concentrated information sharing and cooperation with related financial institutions like the Credit Information Center, the Korea Financial Telecommunications & Clearings Institute, and the Financial Security Institute, has become essential.

An official from the Financial Security Institute explained, "As new types of voice phishing such as phone interception are rampant, it is urgent to explore ways to advance the existing FDS systems held by the financial sector after the TF’s launch," adding, "The TF will be operated with the goal of preparing FDS advancement measures by December."

Financial Services Commission: "TF to Operate Intensively Until Year-End to Eradicate Voice Phishing"

Meanwhile, regarding the Financial Services Commission’s plan last month to have financial companies compensate for voice phishing damages if the victim is not at fault or grossly negligent, it stated that "a TF centered on the banking sector will be formed to gather sufficient practical opinions."

The Financial Services Commission plans to intensively operate not only the FDS advancement TF led by the Financial Security Institute until the end of the year but also the legal and institutional TF led by the Korea Federation of Banks and the Financial Supervisory Service, the financial sector publicity TF led by the Financial Supervisory Service, and the insurance product development TF led by the Korea Insurance Development Institute. The aim is to produce results and utilize them for institutional improvements and strengthened enforcement.