FSS and banks to aid voice-phishing victims with cash and counseling

The Financial Supervisory Service and the financial sector will provide up to 2 million won per person in emergency living expenses and professional counseling to voice phishing victims.

The Financial Supervisory Service (FSS) said on the 22nd that it signed a memorandum of understanding (MOU) at its Yeouido headquarters in Seoul with the Korea Federation of Banks, the Credit Finance Association, the Korea Federation of Savings Banks, and Good Neighbors to support voice phishing victims.

The program will run from this month through October year and will cover 200 voice phishing victims from the past three years whose income is at or below 150% of the median. For this year, that threshold is 3,846,357 won a month for a one-person household and 9,742,107 won a month for a four-person household. Eligible recipients will receive living-expense support and professional counseling services.

Living-expense support will be paid twice within the limits of the loss. Once selected, recipients will first receive up to 1 million won and then an additional up to 1 million won after completing six counseling sessions. Counseling is available up to six times at partner agencies nationwide. Victims who need intensive trauma treatment will be connected to hospitals that can provide it, and counseling costs will be covered up to 2 million won.

Applications will be accepted from the 23rd of this month through the Good Neighbors secretariat. Applicants must submit an application form, an incident confirmation document, and income verification to the Good Neighbors secretariat. Good Neighbors will review applications and notify individuals of the results. The Financial Supervisory Service (FSS) also plans to consider expanding the program across the financial sector later, based on the results of this year's pilot.

According to the Financial Supervisory Service (FSS), there were 7,033 voice phishing cases in the first half of this year, down 61% from the same period a year earlier. Losses fell 52.3% to 327.6 billion won. The FSS said criminal groups posing as prosecutors or the FSS are isolating victims in lodgings, cutting off outside , and stealing money over several days to weeks.

Park Ji-seon, head of consumer protection at the Financial Supervisory Service (FSS), said, "Voice phishing often leaves people not only with financial losses but also with self-blame, anxiety, and fear of what others think, so many endure it alone without even telling anyone," adding, "We hope this agreement will be a strong steppingstone to help victims recover financially and psychologically."