Relief for Victims of 'Face-to-Face Fraud Voice Phishing'... Stricter Punishments Implemented

The Legislative and Judiciary Committee Approves the Amendment to the Telecommunications Fraud Victim Refund Act

[Asia Economy Reporter Yu Je-hoon] A legislative amendment is being promoted to address the crime of 'face-to-face extortion type voice phishing,' where the voice phishing criminal meets the victim in person to receive cash.

According to the Financial Services Commission on the 21st, the National Assembly's Political Affairs Committee held a plenary meeting on the same day and approved the 'Telecommunication Fraud Damage Refund Act Amendment' to include face-to-face extortion type voice phishing as telecommunication financial fraud. The amendment will be enforced six months after its promulgation once it passes the National Assembly's Legislation and Judiciary Committee and the plenary session.

According to the Financial Services Commission, face-to-face extortion type voice phishing crimes have been on the rise, increasing from 2,547 cases in 2018 to 22,752 cases in 2021. This contrasts with account transfer type voice phishing crimes, which decreased from 30,611 cases to 3,362 cases during the same period.

Until now, even if voice phishing criminals were arrested under current laws, investigative agencies did not have the authority to freeze payments, leading to the problem of damage spreading.

Once this amendment passes the plenary session and is enforced, investigative agencies will be able to immediately apply for payment suspension on related accounts as soon as they apprehend the criminal on-site, thereby reducing damage. Furthermore, when the amendment is implemented, investigative agencies will be able to proceed with relief procedures such as extinguishing claims and paying damage refunds if they identify the victim and the amount involved.

The amendment also includes provisions to strengthen the punishment level for voice phishing crimes. Currently, voice phishing criminals are subject to fraud charges under the Criminal Act, punishable by up to 10 years imprisonment or a fine of up to 20 million won. The amendment allows voice phishing criminals to be punished as telecommunication financial fraud offenders, who face imprisonment of at least one year or fines ranging from three to five times the amount of criminal proceeds.

Additionally, simple accomplices such as those who remit, withdraw, or deliver the victim's money, who previously had no separate punishment provisions, will now be subject to imprisonment of up to five years or fines of up to 50 million won.