Standard Fraudulent Payment Response Guidelines to Be Released in November... Financial Supervisory Service and Korea Fintech Industry Association Launch Council

Industry-Level Response to Online Fraudulent Payments

FSS: "Individual Company Efforts Are Not Enough"

Council Members Agree on the Need to Share Practical Solutions

A standard operational guideline for responding to fraudulent payments will be established in November. Despite an increasing number of fraudulent payments—including personal information theft—during the simple payment process, it has become difficult for individual companies to prevent all incidents related to abnormal transactions on their own. This is why financial supervisory authorities and industry players have joined forces to develop a unified guideline.

Main office of the Financial Supervisory Service in Yeouido, Seoul. Financial Supervisory Service

The Financial Supervisory Service and the Korea Fintech Industry Association announced on July 15 that they had held a launch ceremony for the "Online Fraudulent Payment Response Council" at One IFC in Yeouido, Seoul. The event was attended by representatives from the Financial Supervisory Service, the Korea Fintech Industry Association, the Financial Security Institute, electronic payment gateway (PG) companies, academia, and information security experts.

The Financial Supervisory Service and the Korea Fintech Industry Association have noted a recent increase in fraudulent payments resulting from the theft of personal information during simple payment processes. They determined that it is essential for oversight authorities and the industry to jointly address a structural vulnerability: abnormal transactions that slip past the fraudulent transaction detection systems (FDS) of individual financial companies are also not intercepted by PG companies, leading to incidents.

The goal of the council is to build an effective system for preventing and responding to fraudulent payments, thereby strengthening industry security and protecting consumers. The council will be divided into two subcommittees: one focused on FDS and another on anti-money laundering (AML). Each group will conduct in-depth discussions, with the aim of finalizing the "Standard Operational Guideline for Preventing and Responding to Fraudulent Payments" by November.

Lee Jongoh, Deputy Governor for Digital and IT at the Financial Supervisory Service, said, "It is difficult to resolve issues related to abnormal transactions solely through individual efforts by financial companies' FDS and PG companies, so an integrated, industry-wide response is necessary. I request that the council develop practical improvement measures, establishing a system of cooperation in which the entire industry can work together."

Kim Jonghyun, co-chairman of the council and chairman of the Korea Fintech Industry Association, said, "The PG companies participating in the council agree that responding to fraudulent payments is a common industry challenge directly linked to consumer protection. We will actively share our accumulated experience and response cases related to abnormal transaction detection at the company level."

This content was produced with the assistance of AI translation services.