South Korean banks are increasing their use of AI-powered monitoring systems to combat voice phishing as the government prepares new regulations requiring financial institutions to compensate victims, according to industry officials.

The government’s proposed no-fault liability rule would make banks liable for losses even if victims transfer money directly to scammers, regardless of bank error.

This rule is part of a broader anti-voice phishing plan led by the Office for Government Policy Coordination, the Ministry of Science and ICT, and the Financial Services Commission.

Major banks are responding by strengthening fraud prevention measures, with KB Kookmin Bank using AI systems that adapt to new phishing tactics.

Shinhan Bank is launching telecom scam response desks at all branches and has partnered with crypto-exchange Korbit to address laundering via digital assets.

Hana Bank has developed a detection platform using AI deep learning and alerts app users about potential phishing apps.

Woori Bank and NH NongHyup Bank are enhancing monitoring and collaborating with law enforcement and telecom firms to share information on scam methods.

🔗 Source: The Korea Times

🧠 Food for thought

1️⃣ Korea follows Singapore’s pioneering approach to shared fraud liability

Korea’s planned no-fault liability rule mirrors Singapore’s Shared Responsibility Framework, which was implemented in December 20241.

Singapore’s framework marked a global shift by requiring banks and telecommunications providers to share accountability for scam losses while encouraging individual vigilance against fraud1.

This regulatory approach represents a change from traditional models where victims often bore the financial burden of sophisticated scams, even when financial institutions had the technical capability to prevent them.

The timing suggests Korea studied Singapore’s early implementation and adapted similar principles, recognizing that individual consumers cannot reasonably defend against increasingly sophisticated voice phishing operations that use caller ID spoofing and social engineering techniques2.

2️⃣ Voice phishing scale justifies Korea’s aggressive AI defense investments

The massive global impact of voice phishing validates Korea’s emphasis on AI-powered prevention systems over traditional reactive measures.