[Voice112] ④ First Appearance of One-Stop Response Center... Challenges to Address

Overseas Already Operating Dedicated Crime Response System
Accelerating Establishment Based on UK Action Fraud Model
Budget Securing Needed for Integrated Platform
International Cooperation Required for Eradication

[Asia Economy Reporters Seongpil Jo and Sehee Jang] Mr. A, a victim of voice phishing, received a phone call last December. The caller, who introduced himself as a prosecutor, said in a coercive tone, "An arrest warrant has been issued for identity theft and prostitution charges," and "If you want to clear your name, send money to the designated account to prove you are not involved in this case." Flustered, Mr. A immediately transferred 60 million KRW to the account provided by the caller. He realized the call was a voice phishing scam right after the transfer. Feeling regretful, Mr. A sought counseling to recover his losses but was frustrated once again. Crime reports are handled by 112 (National Police Agency), reports and consultations about phone numbers or text messages used in crimes by 118 (Korea Internet & Security Agency), and requests or consultations for account payment suspension or damage relief by 1332 (Financial Supervisory Service). Because the reception offices differ depending on the type of complaint, he had to repeat the same story several times.

Such inconvenience will disappear going forward. Post-incident responses will be unified under a single 112 report call. This is the Integrated Reporting and Response Center for Telecommunication Financial Fraud. In response to criticisms about the lack of a government-wide integrated response system for voice phishing crimes, which have been increasing in damage year by year, the reporting and consultation channels have been unified. Currently, a preparatory team led by the head of the Economic Crime Investigation Division of the National Police Agency is pushing for the center’s establishment, aiming for completion in June.

A dedicated system for telecommunication financial fraud crimes such as voice phishing is already in operation in several countries overseas. For example, Taiwan, where voice phishing crimes appeared earlier than in Korea, has established a dedicated fraud reporting center (165 Fraud Reporting Center) and operates investigations through dedicated departments in police stations linked with financial institutions. Hong Kong also operates the Anti-Deception Coordination Center (ADCC) under the Commercial Crime Bureau of the police through interdepartmental cooperation, providing not only investigations but also victim counseling. The United States operates an 'Internet Crime Complaint' center led by the Federal Bureau of Investigation (FBI), working with related agencies to handle crime reports, trend analysis, and regular alert issuance.

The police are accelerating the establishment of the Integrated Reporting and Response Center for Telecommunication Financial Fraud based on these overseas models. Ultimately, beyond unifying reporting and consultation channels, the focus is on building an integrated platform to strengthen the response system through data analysis and sharing. This is similar in nature to the UK's Action Fraud. The UK operates Action Fraud as a national single reporting agency for fraud crimes, systematically classifying all received cases at the National Fraud Intelligence Bureau (NFIB) and producing and distributing crime-related information to contribute to criminal arrests and prevention of damage spread. The police expect that when the center is established, it will integrate voice phishing-related information like Action Fraud and produce and distribute information for criminal arrests and damage prevention like the NFIB.

However, many challenges remain. First, securing a budget for building the platform to integrate information related to telecommunication financial fraud such as voice phishing is necessary. The police estimate that about 3 billion KRW will be required to build the integrated platform and aim to include it in next year’s budget. As a preliminary step for budget application, the police secured 100 million KRW last year for the Information Strategy Plan (ISP) and have started establishing the ISP. A police official explained, "The required budget may vary depending on the ISP results."

Even if the budget is secured and the integrated platform is built to big data-ize crime information, it is uncertain whether this will immediately reduce damage. This is because crime methods are constantly evolving. The goal is to accumulate data on crime methods to prevent damage and stop its spread, but when new crime methods emerge, the data can become practically useless. In fact, scammers started using 'repeaters' that change the caller ID from '070' numbers, which people avoid answering, to '010' numbers. When the police cracked down on repeaters installed in motels, scammers began carrying them in vehicles or even using secondhand smartphones as repeaters. After strengthening bank account issuance procedures and delaying withdrawals to tighten the financial account channels used for collecting money, the scammers changed tactics to directly meet victims and steal money.

Experts advise that international cooperation is essential to eradicate telecommunication financial fraud crimes such as voice phishing. Professor Do-woo Kim of the Department of Police Science at Gyeongnam National University said, "Voice phishing is a transnational crime that crosses borders," and emphasized, "While the center’s establishment can improve reporting convenience, it must ultimately be positioned to cooperate with other international police organizations." Professor Daekyung Kwak of Dongguk University’s Police and Judicial College also said, "Cooperation with foreign investigative agencies is necessary," and added, "Efforts to strengthen cooperative relationships not only with individual countries but also with international organizations like Interpol are needed."

There are also criticisms that the center’s establishment has limitations in eradicating crimes as long as telecommunication financial fraud upper organizations remain active in countries like China and the Philippines. Professor Woonghyuk Lee of the Department of Police Science at Konkuk University said, "Cooperation with Chinese public security is another challenge," and added, "Efforts to cooperate with Chinese public security are as important as cooperation among domestic agencies."