According to industry officials on Monday, as the government moves to require financial institutions to compensate phishing victims, banks are strengthening their defences against voice phishing, including updating AI-powered monitoring systems.
The initiatives coincide with the government’s plans to enact a no-fault liability rule that would compel financial institutions to reimburse voice phishing victims even in cases where the victims transferred money directly to criminals and the banks were not at fault.
The Ministry of Science and ICT, the Financial Services Commission (FSC), and other agencies participated in a pan-government task force headed by the Office for Government Policy Coordination that developed comprehensive anti-voice phishing plans, of which this measure is a key component. In its announcement of the plans on Thursday, the government said it will consult with financial firms to establish specific requirements, limits, and procedures as early as this year.
As a result, the nation’s largest banks intend to concentrate their subsequent actions on bolstering voice phishing defences. They feel that after damages occur, their burden of compensation would significantly increase, making proactive fraud prevention essential. As a result, they are giving more thought to using AI technology to improve security. With the help of an AI relearning model that collects data on its own and retrains itself to react quickly to novel phishing techniques, KB Kookmin Bank runs a voice phishing monitoring system in addition to a fraudulent transaction detection system.
All 652 branches of Shinhan Bank will have specialised desks for telecom financial scams, where knowledgeable employees can promptly freeze fraudulent accounts when victims ask for assistance. In keeping with the growing trend of money laundering through digital assets, it has also teamed up with cryptocurrency exchange Korbit to develop a joint defence system. The bank claims that its next-generation detection platform, which combines AI deep learning with historical fraud scenarios, has proven very successful in stopping phishing and fake account fraud. Furthermore, when users log in, the bank’s app warns them if a phishing app is found on their devices. Through partnerships and improved monitoring technologies, Woori Bank and NH NongHyup Bank are also strengthening security.
In addition to working with the Financial Security Institute and the police to handle suspicious foreign accounts, Woori has partnered with mobile carrier LG Uplus to exchange scam tactics, create collaborative projects, and create comprehensive action plans via a special working group. In the meantime, NongHyup runs round-the-clock surveillance on questionable accounts and is improving its monitoring models in light of recent fraud cases, BrandSpur banking and finance news desk reports.
According to an FSC official: “As voice phishing tactics grow more advanced, individuals alone cannot effectively prevent losses. Financial institutions, with their specialised expertise and infrastructure such as fraud detection systems, must now share responsibility and implement a more coordinated response.”
