South Korea unveils new credit blocking program against phishing scams

Voice phishing scams reportedly amounted to over $146m in 2023.

Over 4,000 financial institutions in South Korea have signed up for a new “credit transaction safe block” service, allowing customers to block any future loans without their knowledge or approval.

Launched on 23 August by the Financial Services Commission (FSC), the program allows customers to opt out of credit services, such as taking out new loans. 

It is expected to prevent the potential damage from voice phishing scams, reports Yonhap, citing an announcement by the FSC.

FSC chief Kim Byoung-hwan noted that voice phishing crimes are causing more damage, inducing victims to download spy applications and then taking out loans after stealing their personal information.

Damage from voice phishing crimes has reportedly amounted to over $146m in 2023, 35% higher than in 2022, reports Yonhap, based on data from financial regulators.

"Starting today, a new service will be launched where consumers can block fresh loans easily and in advance, and their decision to opt out will be shared by all financial institutions," Kim said during the launch of the program at a ceremony held at a Nonghyup branch in Seoul, South Korea.

Consumers can sign up for the opt-out program at their own banks or any other major financial institutions.

(The original report “New preventive measure launched against loan application fraud” was published on 23 August 2024 by Yonhap News Agency)