In recent years, financial security incidents, especially phishing attacks, have become a serious problem. According to the Financial Supervisory Service, the damage caused by voice phishing in Korea in 2023 reached a record high of 195.6 billion won. This highlights the severity of financial fraud and how easily we can fall victim in our daily lives.
I, too, have experienced voice phishing in the past. One day, while taking a nap on a holiday, I received a call from someone claiming to be from a city prosecutor's office. They called me by name, said I was involved in some case, and pressured me to take immediate action. Fortunately, I sensed something was wrong and hung up. Upon checking the number, I realized it was a voice phishing scam.
Phishing attacks exploit emails, text messages, and phone calls to steal personal information. With technological advancements, these attacks have become more sophisticated. Voice phishing and smishing, in particular, are evolving to extract financial information by subtly manipulating users' psychology.
Many people have received messages disguised as bank notifications or fake texts about overseas card payments. Recently, there have even been messages pretending to be complaints about noise between floors.
These attacks come in various forms, tricking people into entering personal information. They often lure victims into clicking on malicious links in text messages, then steal information from their smartphones or cause financial damage.
Victims who fall for these attacks disguised as everyday messages can suffer severe financial losses. As the damage from phishing attacks becomes more serious, there is an urgent need for institutional measures to protect victims.
Recognizing the increase in phishing attacks and the severity of the damage, the financial industry has introduced new measures since January 2024. The "Voluntary Compensation System for Non-face-to-face Financial Accident Victims such as Voice Phishing" has been implemented. This system aims to enable financial institutions to voluntarily compensate victims, allowing them to receive compensation more quickly.
For example, if a customer suffers financial loss due to voice phishing and reports it to the bank, the bank will conduct its own investigation and provide compensation quickly. This shows that the financial industry is moving in the direction of strengthening victim protection and increasing the responsibility of financial institutions in the face of the growing number of phishing crimes.
Prevention is better than cure. In addition to such efforts, the financial sector needs to introduce various solutions to prevent financial accidents. Recently, there has been an increase in fraudulent transactions due to card cloning overseas. Technologies to address this have also emerged.
SSenStone's OTAC (One-Time Authentication Code) technology is a security solution that prevents such financial fraud. It prevents cyberattacks through the card's IC chip and the OTAC module embedded in financial apps.
Every time a user tags their payment card on their smartphone, a new dynamic code is generated for authentication. The first OTAC is generated through NFC communication, and the second OTAC is generated in conjunction with the app to block sniffing risks.
The emergence of such security technologies is improving the safety of financial transactions without compromising user convenience. Users can now safely use financial services such as high-value remittances simply by tagging their cards. This allows for effective prevention of financial fraud without complex authentication processes.
@ Image by Philippe Delavie from Pixabay
The risk of phishing attacks is increasing day by day, and the damage is becoming more serious. To prevent this, strong security solutions must be introduced by financial institutions in addition to individual caution.
Individuals should not click on suspicious links or attachments. If you receive a message requesting personal or financial information, be cautious and verify it through the official app or website. Also, change your passwords regularly and use strong passwords.
Financial institutions should strengthen victim protection through the recently introduced voluntary compensation system. They should also further enhance financial security by adopting authentication technologies such as SSenStone's OTAC technology.
Preventing financial fraud can be most effective when individual caution, the efforts of financial institutions, and the introduction of innovative technologies come together. Everyone should participate in these efforts to combat financial fraud and build a safe and trustworthy financial environment.
