Toss Safe Compensation System Expands to Include Fraud in Secondhand Transactions

[Asia Economy Reporter Kiho Sung] Viva Republica, the operator of the mobile financial platform Toss, announced on the 27th that it will compensate customers who have suffered fraud damage in online secondhand transactions for the amount sent via Toss. This is to expand the scope of the Safe Compensation System introduced in July last year and provide stronger protection measures to customers using Toss compared to traditional financial institutions.

Going forward, Toss has decided to compensate up to 500,000 KRW once for customers who suffer fraud damage while trading on domestic online secondhand transaction platforms. Compensation will be provided only for amounts sent through Toss, and if reported to the Toss customer center within 15 days of the damage occurrence, customers will receive compensation after going through procedures such as submitting evidence of reporting to investigative agencies.

As the size of the secondhand transaction market has recently grown and fraud damage exploiting this has become frequent, the scope of the Safe Compensation System, which has been operated so far, has been expanded to include online secondhand fraud transactions. Toss introduced the Safe Compensation System in July last year, the first in the domestic fintech industry, compensating for third-party identity theft and voice phishing damages that occurred through Toss. Even if Toss has no direct responsibility, it is a customer protection policy designed to prioritize relief for customers’ financial damages so that they can use Toss with greater peace of mind.

A Toss official said, “We have decided to provide relief for a wider range of customers’ financial damages, including the recently increasing internet secondhand fraud transactions,” adding, “This is part of an active customer protection policy to support customers to trust and use Toss under any circumstances.”

However, transactions involving cash-convertible products such as game items and various gift certificates, or items prohibited from internet transactions under current law, are excluded from compensation. Also, if a customer sent money despite receiving a warning that the account was suspected of fraud at the time of sending via Toss, compensation is difficult.

While expanding the Safe Compensation System, Toss has also advanced its Fraud Detection System (FDS) technology to detect and block fraudulent transactions. As a result, over 100 fraudulent transactions have been proactively blocked in the past six months. Recently, a customer expressed gratitude, saying, “I was about to send a large amount of money after being deceived by voice phishing, but Toss blocked the transaction and I did not suffer damage.” Toss currently operates a dedicated organization that monitors users’ app usage patterns 24 hours a day to detect abnormal transactions.

In addition, Toss is making efforts to minimize the occurrence of damage itself by cooperating with the National Police Agency and The Cheat to provide the ‘Fraud Suspicion Siren’ function, which checks whether all remittance accounts are suspected of fraud.