'Safe Blocking Service' to Prevent Voice Phishing Damage, 89,817 People Enrolled in One Month

Non-face-to-face Applications via Internet-Only Banks Begin from the 30th
Enhancing Service Application Convenience for the Elderly
Plan to Expedite Proxy Applications

On the 29th, financial authorities announced that 89,817 financial consumers had signed up for the Credit Transaction Safe Blocking Service within one month since its implementation on August 23. The Credit Transaction Safe Blocking Service is designed to preemptively block an individual's new credit transactions such as personal loans, card loans, credit card issuance, and insurance contract loans to prevent financial damage caused by loans executed without the user's knowledge.

Once users subscribe to the service, credit transactions are blocked in real time across 4,012 financial companies, including banks, financial investment firms, insurance companies, specialized credit finance companies, savings banks, as well as mutual finance institutions and the Korea Post. The service also helps prevent damages from voice phishing and other frauds when there is concern about personal information theft or identity misuse.

Looking at subscription rates by age group, the elderly aged 60 and above showed the highest subscription rate, accounting for about 62% of all subscribers. This is interpreted as reflecting the relatively low demand for new loans among the elderly, coupled with a higher concern about voice phishing due to identity theft. On the other hand, the subscription rate among those in their 20s and 30s was relatively low, likely influenced by the existing face-to-face subscription method, which required visiting financial institutions despite their demand for new loans.

By financial sector, subscriptions were mainly made through banks (66%) and mutual finance institutions (25%), with most subscriptions occurring via banks that have nationwide branch networks.

Starting from the 30th, customers of internet-only banks (KakaoBank, Toss Bank, K Bank) will be able to apply for the Credit Transaction Safe Blocking Service non-face-to-face. This is expected to make it easier for younger generations in their 20s and 30s, who are accustomed to non-face-to-face financial transactions, to subscribe. Additionally, blocking will be applied to insurance contract loans and financial/operating lease products, and the non-face-to-face safe blocking application channels will be gradually expanded starting with major commercial banks and card companies with many users within the year to improve service accessibility.

Meanwhile, the Financial Services Commission is also promoting the allowance of safe blocking applications by authorized representatives. Following the operation of the Credit Transaction Safe Blocking Service, many financial consumers requested that applications via authorized representatives be permitted to assist elderly individuals with mobility difficulties. Accordingly, financial authorities plan to promptly improve the system to allow applications through authorized representatives with proper delegation, in addition to the current system where only the financial consumer themselves or their legal representatives can apply.

A financial authority official stated, "Please check the posts on various channels operated by the Financial Services Commission and the Financial Supervisory Service and actively use the Safe Blocking Service," adding, "Going forward, financial authorities will strengthen promotional efforts so that the public can protect themselves from damages such as voice phishing through the Credit Transaction Safe Blocking Service."