On November 20th, a revision to the “Special Act on the Prevention of Loss Caused by Telecommunications Based Financial Fraud and Refund for Loss” was implemented. According to the data submitted by the Financial Supervisory Service, the amount of voice phishing damage over the past three years is 1.28 trillion won, and the amount that has not been returned is 717.6 billion won, 70 percent of the total. An anonymous office worker said, "My heart sank when my son texted me to send money for his broken phone repair when he was supposed to be in the gym. It turned out a scam because my boy was in the gym when I called him to check his location. It was maddening listening to the phisher swearing when I told him I will report this incident.”

By virtue of this amendment, the minimum standard amount for the commencement of the Asset Forfeiture Policy is appointed at 10,000 won. This procedure refers to eliminating the right of the holder of the account exploited for fraud to return the remaining balance of the deposit to the victim without a court trial. The law before the revision did not allow damages of less than 30,000 won to initiate the asset forfeiture policy to increase the efficiency of voice phishing damage relief procedures. Moreover, the court form was newly established to report phone fraud to the Financial Supervisory Service.

Joo Ji-Hong (Professor, Graduate School of Law, PNU), "Vishing differentiates itself from other frauds by targeting the working class who have lower access to assistance and alert from the bank. Therefore, victims get involved often too unconsciously, making the recovery especially strenuous. Furthermore, in many cases, people with financial difficulties are seduced to open a fake bank account as an easy part-time job and are punished as criminals. Above all, we should be aware that Korea has a higher ceiling on account transfers and cash withdrawals than foreign countries, and the financial system is lax, such as requiring solely a passport for opening bank accounts to foreigners. To avert the vishing damages, strengthening the legal basis for the suspension of fraudulent accounts is imperative. Plus, we must educate people on this matter, and establish an international cooperative investigation system as institutional means. Alongside the revision, the government is taking legislative measures to prevent damage by allowing these scams to be reported simultaneously with the application for damage relief. I hope, in consequence, this act brings in a curtailed amount of damage by voice phishing.”

By Cho Eul-Dam, Cub Reporter