[Reporter’s Notebook] Real Livelihood Pledges Begin with Measures Against Fraud Crimes

Despite Financial Supervisory Service Guidelines,
Financial Institutions Remain Passive on Compensation Requests
No Law to Enforce Victim Relief
Scam Account Payment Suspensions Quadruple in Five Years
No Measures for Livelihood-Related Scams in Presidential Pledges
Protecting Citizens Starts with Combating Crime

Following our exclusive report that victims of stock leading room scams?where fraudsters disappear after collecting investment funds via fake home trading systems (HTS)?can seek compensation, we have received a surge of tips. Some of these reports were encouraging. For example, there was a story about how a commercial bank, which had previously refused to process compensation requests, accepted an application after the customer submitted a document attaching our article. However, most of the tips described how banks or credit card companies outright refuse to accept compensation requests for payment suspension or reimbursement of funds from accounts used in scams.

Not long ago, a young man called me. His voice was trembling, yet tinged with anger. He said, "I just answered a call while walking down the street, and it was a stock investment solicitation. They said I had to use a stock trading program and then took my money through a credit card payment. But the card company is saying that compensation claims are not possible, which makes no sense." The card company maintains that he did not fall victim to a stock leading scam, but instead received a 'service' and that without submitting a contract related to this service, they cannot provide compensation. This young man is also the son of a middle-aged woman who recently emailed a tip. This woman, a full-time homemaker, lost several million won five years ago and has been applying for compensation from the card company ever since, but her requests have been ignored.

The advice I gave them was that their only option is to file a complaint with the Financial Supervisory Service and try to provide proof, such as submitting a certificate of incident issued by the police to the card company. It is deeply regrettable that victims are left entirely at the mercy of financial institutions' approval processes.

This was a foreseeable problem from the beginning of our investigation. Even if the Financial Supervisory Service determines a case to be fraud, there is no law requiring financial institutions to comply. Legislative efforts are underway, but it is expected to take time before any bill is passed.

While the law fails to protect victims, related scam crimes are exploding. According to data obtained by Lee Jungmoon’s office (Democratic Party of Korea) from the Financial Supervisory Service, the number of payment suspensions for scam accounts at the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) and three internet banks (KakaoBank, K Bank, Toss Bank) increased from a total of 10,827 cases in 2020 to 45,904 cases last year?more than a fourfold jump.

The presidential election is now just over ten days away. Candidates are announcing their top ten pledges, promising to improve people’s livelihoods. However, there are no visible measures to address crimes like these that directly impact ordinary citizens. Most victims of investment fraud, as in the cases above, are everyday people. Leaders must recognize that providing practical relief for these victims and eradicating scam crimes are the true first steps toward policies that genuinely serve the public.