"Accounts Opened and Abused Without My Knowledge, Preemptive Blocking Becomes Possible"

Implementation of 'Non-Face-to-Face Account Opening Safety Blocking' Service to Prevent Voice Phishing
3,613 Financial Institutions Including Banks, Savings Banks, Mutual Finance, and Korea Post Participate

#A was deceived by phone calls (texts) claiming that a card he did not apply for was being delivered and installed a malicious (remote control) application (app) provided by a criminal organization. The criminal organization used the stolen personal information obtained through the app to open non-face-to-face deposit accounts and used them as mule accounts to receive voice phishing proceeds.

#B received contact from a scammer impersonating his son and had his personal information on his mobile phone stolen through a malicious app installed by clicking a text link. The criminal organization used the stolen information to open a budget phone account, then secretly opened an account at C Internet Bank using a forged ID for budget phone identity verification, and transferred tens of millions of won to defraud him.

From now on, non-face-to-face accounts opened without the account holder's knowledge can be blocked in advance. The Financial Services Commission and the Financial Supervisory Service announced that starting from the 12th, they will implement the 'Non-Face-to-Face Account Opening Safety Blocking Service.' If you apply for this service at a financial company, it prevents the non-face-to-face opening of demand deposit accounts that you do not want.

A Financial Services Commission official explained, "Once you subscribe to the service, the safety blocking information is registered with the Korea Credit Information Services immediately, and new demand deposit account opening transactions in the financial sector are blocked in real time, preventing financial damage caused by accounts opened without the account holder's knowledge."

To enhance the effectiveness of the system, 3,613 financial companies (including mutual finance unit cooperatives) that can open accounts, such as banks, savings banks, mutual finance, and the Korea Post, have participated.

The service can be applied for by visiting branches of banks, savings banks, NongHyup, Suhyup, ShinHyup, Saemaeul Geumgo, Forestry Cooperatives, and post offices where you currently have transactions, or through non-face-to-face channels such as banks (mobile/internet banking) and the Korea Financial Telecommunications & Clearings Institute (Account Info).

After subscribing to the Non-Face-to-Face Account Opening Safety Blocking Service, if the user wants to conduct new demand deposit transactions, they can visit the nearest financial company branch to cancel the service regardless of existing transactions. After cancellation, demand deposit account opening is immediately possible.

The financial authorities expect that with the implementation of this Non-Face-to-Face Account Opening Safety Blocking Service following last year's Credit Transaction Safety Blocking Service, exposure to various crimes such as voice phishing and money laundering among financial consumers will decrease. The Credit Transaction Safety Blocking Service is a system where, if the user applies in advance, safety blocking information is registered with the Korea Credit Information Services, and new credit transactions such as credit loans and card loans in the financial sector are blocked in real time.

Since the service launch, about 310,000 financial consumers have subscribed within seven months, receiving a great response. Looking at subscription status by age group, the subscription rate among those aged 60 and over was about 53% of total subscribers, the highest. The authorities emphasized that this shows the high demand among the elderly, who are vulnerable to voice phishing damage.

Kim So-young, Vice Chairman of the Financial Services Commission, visited the Shinhan Bank headquarters in Seoul on the day to inspect the system implementation and said, "Voice phishing is a crime that threatens social trust and the safety of the financial market beyond individual economic damage," adding, "We will continue discussions with related agencies and the financial sector to expand the safety blocking target to open banking as soon as possible."

Lee Bok-hyun, Governor of the Financial Supervisory Service, also urged, "The government and the financial sector must unite and respond with full force to eradicate financial crimes," and requested, "Please actively strive to ensure that the Non-Face-to-Face Financial Transaction Safety Blocking Service serves as a strong safety net protecting financial consumers."