FSC-FSS Issue Consumer Alert over Potential Phishing Scams Following Data Breaches in Financial Sector

The Financial Services Commission and the Financial Supervisory Service issued a consumer alert (Level I: Caution) on October 6, urging financial consumers to practice caution over potential phishing attacks and loan scams following recent personal information breaches in the financial sector.

In addition, the FSC and the FSS are operating a special response period for one month starting from today to make all-out efforts to prevent subsequent damages, such as phishing attacks and loan scams, involving leaked data.

In this regard, the financial authorities have convened a meeting with financial companies on October 6 and instructed them to take the following measures.

a) Operation of help desks

During the special response period, financial companies should set up and operate help desks to provide active assistance to affected consumers and guide them through preventive steps. If they come across a suspected phishing scam, financial companies should immediately report to the authorities and quickly share relevant information with other financial companies to prevent further spread of damages.

b) Enhanced FDS monitoring

Financial companies are instructed to strengthen their monitoring of suspicious transactions activities involving stolen consumer data through their own fraud detection system (FDS). As such, financial companies will more closely review online loan applications, new accounting opening, and large-amount transfer of money involving stolen consumer data and require additional ID verification steps if needed.

c) Joint response through ASAP

Financial companies are instructed to make active use of the AI-based anti-phishing Sharing & Analysis Platform (ASAP) to quickly share phishing-related information with other entities and effectively cut off suspicious transactions and further damages.

d) Consumer remedies and compensations

Financial companies are instructed to continue to closely monitor the extent of damage regarding personal information breaches and make sure to promptly provide consumer remedies and compensations for affected consumers.

If there are confirmed cases of subsequent damages involving stolen consumer data, the financial authorities will raise the consumer alert from Level I (Caution) to Level II (Warning) and prepare additional steps deemed necessary.

So far, there have been no confirmed cases of phishing scams resulting in financial damage or money being stolen with leaked consumer data. Thus, depositors should refrain from being overly concerned about the safety of their deposited funds.

To make sure to prevent subsequent damages, consumers are advised to practice caution and take necessary steps as recommended by the financial authorities and financial companies.

* Please refer to the attached PDF for details.