"The Transfer Failed, but 'Ding-Dong,' Money Came In"... KRW 32.5 Billion Financial Incident at Toss Bank

Failed transfers from other banks incorrectly recorded as deposits
80% corrected in two weeks... 25 billion won recovered
Toss Bank: "No direct loss of customer funds"

The amount incorrectly recorded in Toss Bank’s deposit-processing error incident reached 32.5 billion won. Toss Bank said it restored the system shortly after the incident and completed corrections for 25 billion won, or about 80% of the total. No funds were actually withdrawn from accounts at other banks, so customers suffered no direct financial losses, according to the bank.

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In a disclosure to the Financial Supervisory Service on October 22, Toss Bank said a deposit-processing error involving transfers from other banks had resulted in a financial incident totaling 32,493,696,000 won. So far, 25,205,653,000 won has been recovered or corrected, while procedures to recover the remaining 7,288,043,000 won are underway. The estimated loss has not yet been finalized.

Error During System Update... Failed Transfers Recorded as Deposits

The incident occurred at around 2:20 p.m. on October 7. During an update to Toss Bank’s internal transfer system, some transfers sent from other financial institutions to Toss Bank failed, but were recorded in the recipients’ accounts as if the funds had been deposited successfully. The error lasted about 30 minutes.

Toss Bank became aware of the problem through customer inquiries about the processing of deposits from transfers made at other banks, and began correcting the transactions and recovering the funds. The error itself was fixed on the day of the incident, and all transfer transactions are now operating normally. Corrections have been completed for about 80% of the total amount affected by the error, and work on the remaining amount is ongoing.

"No Direct Financial Losses"... Recovery and Corrections Continue

Toss Bank said the error did not cause direct financial losses to senders or recipients. Because no funds were actually withdrawn from the accounts at other financial institutions used to make the transfers, customers did not lose any money, the bank said. In a statement, the company said, "We sincerely apologize to our customers," adding, "We will work to resolve this matter responsibly so that we can become a bank you can trust."

To reduce customer inconvenience and resolve the remaining transactions, Toss Bank set up a dedicated customer service hotline and assigned additional staff to handle inquiries. It is also operating a dedicated response team that includes senior executives such as the chief consumer protection officer and chief technology officer. The team is monitoring correction progress and customer concerns in real time and is expected to remain in operation until the matter is resolved.

Toss Bank has also launched a task force (TFT) to strengthen internal IT controls and prevent a recurrence. The bank plans to review its systems, organizational culture, and overall internal control framework, and develop and implement improvements.

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