As more database firms collect personal information by touting "insurance checkup centers" or "coverage analysis" and sell it to corporate insurance agencies (GAs; General Agency), financial authorities issued a consumer alert. The concern is that people could be exposed to unwanted insurance sales or suffer personal data leaks.
The Financial Supervisory Service on the 1st issued a consumer alert (caution) against database firms that impersonate insurance checkup centers to collect personal information. According to the Financial Supervisory Service, they use names easily mistaken for public institutions or pitch "free financial checkups" and "finding hidden insurance payouts" to gather personal data and then provide it to GAs.
Database firms recruit consumers via social networking services (SNS) or TV and online ads. If consumers agree to third-party provision during the consultation request process, their personal information goes to GAs and is used to solicit insurance enrollment. The same procedure applies when they leave a phone consultation request or an online inquiry.
There are many cases where firms lure people with small perks like coffee coupons or gas vouchers while also obtaining consent for third-party provision. The personal data obtained this way was found to be traded at 50,000 to 130,000 won per person, depending on the likelihood of buying insurance. The Financial Supervisory Service found, after examining 27 large GAs, that they were linked with about 100 database firms.
The problem is that this can go beyond simple sales and lead to consumer harm. The Financial Supervisory Service noted it can be abused for unsound practices, such as excessive churning of policies, and warned that leaks could lead to secondary crimes like voice phishing.
The Financial Supervisory Service emphasized that even if the name "insurance checkup center" is used, it is likely a private company, and people should check the purpose of use and the recipients before providing personal information. It also said that even after agreeing, people can request withdrawal and deletion.
The Financial Supervisory Service plans to review how GAs manage database firms going forward and to respond strictly to illegal activities.