[Q&A] Partial Restriction on ATM Non-passbook Transactions, Minimal Inconvenience for Genuine Users Expected

[Asia Economy Reporter Song Hwajeong] To combat voice phishing, the limit for cash deposit without a passbook at ATMs will be lowered from 1 million KRW to 500,000 KRW per transaction. Additionally, the daily receiving limit will be capped at 3 million KRW. To minimize criminals' fund theft through open banking, when opening an account remotely and subscribing to open banking, fund transfers via open banking will be blocked for 3 days, and the daily usage limit will be reduced from 10 million KRW to 3 million KRW during this period. Furthermore, facial recognition systems will be introduced during remote account opening to strengthen identity verification procedures.

On the 29th, the Financial Services Commission announced the voice phishing countermeasures in the financial sector in a Q&A format.

▲What is the reason for the recent increase in face-to-face extortion methods?

= As various measures have been introduced to prevent account transfer-type voice phishing, making it more difficult, it is estimated that face-to-face extortion-type voice phishing, which allows relatively easier deposits and withdrawals, has increased.

▲Will reducing the ATM cash deposit without passbook or receiving limits cause inconvenience to consumers?

= The ATM-related regulations in this measure are limited to ATM cash deposit (cardless) transactions where real-name verification is not possible. ATM cardless transactions involve depositing cash into an account via ATM by entering only the resident registration number without a card or passbook, accounting for about 0.36% of all remittance and transfer transactions. Transactions using media (card or passbook), non-face-to-face (mobile, internet, phone) transactions, and counter transactions will remain unchanged.

Even if some restrictions are placed on ATM cardless transactions, it is expected that there will be minimal inconvenience to genuine users. Even if the limit for ATM cardless deposits without real-name verification is reduced to 500,000 KRW, about 63.35% of ATM cardless deposits are under 500,000 KRW (based on the first quarter of this year from the five major banks: Kookmin, Shinhan, Hana, Woori, and Industrial Bank of Korea), and deposits exceeding 500,000 KRW can be split into 500,000 KRW increments. Regarding accounts without real-name verification for receiving, even if the daily receiving limit is set to 3 million KRW, about 99.56% of accounts receiving funds via ATM cardless deposits have daily receipts under 3 million KRW.

▲Will restricting transfers for 3 days after subscribing to open banking following remote account opening cause significant inconvenience to consumers?

= The open banking usage restriction applies for 3 days to those who newly subscribe to open banking after remotely opening an account. Recently, voice phishing cases have increased where criminals open shell accounts remotely, subscribe to open banking, and immediately liquidate funds, so a temporary restriction is necessary. However, even if fund transfers via open banking are blocked for 3 days, direct transfers from other financial institutions' accounts are still possible, so consumers are unlikely to experience inconvenience in transferring necessary funds during this period.