To counter voice phishing, an Open Banking safe-blocking service with participation from more than 3,600 financial companies will be implemented. The goal is to prevent financial damage from spreading to all accounts consolidated with Open Banking.
According to the Financial Supervisory Service on the 14th, the Open Banking safe-blocking service will begin that day. Previously, the safe-blocking service was introduced for credit transactions in Aug. last year and for non-face-to-face account openings in Mar. this year. As of the end of Oct., about 3.18 million and 2.52 million people, respectively, had signed up.
Open Banking is a service that allows users to register all bank accounts under their name in a single financial company application (app) to conveniently use financial services such as deposits and withdrawals. However, it has been pointed out as a weakness that if a financial accident occurs due to personal information theft, the damage could expand to all accounts.
By using this safe-blocking service, Open Banking registration will be blocked for all accounts at financial companies that consumers choose to block from Open Banking. If Open Banking is already registered, withdrawals and inquiries through it will all be blocked. In urgent situations such as personal information being stolen through voice phishing, there will be no need to suspend each account one by one at every bank.
A total of 3,608 companies, including banks, securities firms, savings banks, and mutual finance institutions that provide Open Banking services, will participate in this service. Each unit cooperative will cooperate through its central association. Only individuals who are Korean nationals aged 19 or older can sign up. Sole proprietors, foreigners, minors, and deceased persons who cannot use the Open Banking network are not eligible.
Applications can be made by visiting a branch (banks, savings banks, NongHyup, the National Federation of Fisheries Cooperatives, credit unions, Korean Federation of Community Credit Cooperatives (KFCC), forestry cooperatives, post offices) or through channels such as the Korea Financial Telecommunications and Clearings Institute's Account Info application or bank mobile banking. However, to prevent unauthorized cancellation, cancellations are only possible in person at a branch after identity verification.
Subscription to the safe-blocking service will be notified once a year by text message, email, and so on. Inquiries can be made through the Account Info app or financial companies' mobile banking, among others. An official at the Financial Supervisory Service (FSS) said, "A legal representative can also apply for subscription and cancellation of the service at a branch," adding, "In such cases, related authorization documents such as a power of attorney, a seal certificate, a seal stamp, and the agent's ID are required."
On the day, Financial Supervisory Service Governor Lee Chan-jin visited the KB Kookmin Bank headquarters in Yeouido, Seoul, to check the subscription procedures and attended a meeting related to the implementation to hear on-site difficulties. Lee said, "Voice phishing is a serious crime affecting people's livelihoods that threatens even the public's property and lives," adding, "We ask each institution for active promotion and cooperation so that this safe-blocking service can take root as a practical financial consumer protection measure."