Bank Must Repay 50 Million Won Due to Phishing Scam Error

• •The bank must return 50 million won to the son due to an employee error.
• •The mother was a victim of a voice phishing scam that led to the account closure.
• •The financial firm is held liable for breaching its duty of care.

A South Korean financial firm is required to return 50 million won to a customer’s son after an employee mistakenly closed his account during a voice phishing incident. The Financial Supervisory Service (FSS) ruled that the bank breached its duty of care by closing the son's account instead of the mother's. The incident occurred in September 2024 when the mother, deceived by a scammer, requested to close her account. The employee closed the wrong account and issued a check to the mother, who later lost the funds to the scammer. The FSS determined that the financial firm must repay the son, as he was the legitimate account holder. The ruling also stated that the bank cannot claim the money back from the mother, as she was under the influence of the scammer at the time of the transaction.