KT Blocks Blockchain and AI to Block Tricks Like 'Jihyeokhwaepyeokkang'

Increase in Recent Cases of Local Currency Misuse
Enhancement of Anomaly Transaction Detection System

[Asia Economy Reporter Cha Min-young] Recently, as cases of so-called ‘local currency scams’?where benefits from purchasing local currency annually are illegally converted into cash?have increased, technologies to block abnormal transactions are also being advanced.

On the 12th, KT announced that it will enhance the local currency abnormal transaction detection system used in ‘KT Good Pay’ based on blockchain and artificial intelligence (AI) technologies.

The main features of this enhancement include ▲machine learning-based consumption pattern learning of consumers and merchants ▲early detection of abnormal transactions with various patterns ▲transparency in the distribution process of local currency.

The local currency abnormal transaction detection system learns local currency transaction data using machine learning technology. Based on the learned purchasing patterns, it can detect both predefined abnormal transactions and newly occurring abnormal transactions that have not been previously defined. For example, if an unusually large amount of payments or exchanges occur within a very short time compared to the number of payment or exchange transactions at existing merchants, it is immediately detected. Previously, there was a limitation where only rules predefined by administrators could be detected and notified.

KT local currency managers can monitor the occurrence trends of abnormal transactions in real time through this system. Additionally, when an abnormal transaction is detected, the system automatically sends an alert message to the KT personnel in charge. The personnel then make a judgment on the abnormal transaction and, if necessary, block the payment or settlement.

Im Chae-hwan, Executive Director of KT AI/DX Platform Business Division, said, “This local currency abnormal transaction detection system, which applies blockchain and AI, enables response to and blocking of malicious distribution of local currency,” adding, “KT will continue to introduce measures for revitalizing the local economy and ensuring stable operation and use.”