Ryu Young-joon, the KakaoPay CEO and the Korea Fintech Industry Association chairman (Image courtesy of Yonhap)
SEOUL, July 6 (Korea Bizwire) – Kakao Pay, a mobile payment platform operated by South Korean IT behemoth Kakao Corp., will be introducing a more customer-friendly policy in the event of identity theft, which is on the rise as consumer payment patterns shift online.
According to sources knowledgeable with the company, Kakao Pay will offer compensation to users whose personal information is stolen and who become victims of identity theft as a result.
Kakao Pay’s new program will be implemented separately from law enforcement investigations into reported cybercrimes, the first move of its kind by any payment service provider, a company official explained.
It usually takes a significant amount of time for an identity theft victim to recover damages when cases are reported to law enforcement. The burden of proof is on the victim, making it much harder for any victim to establish the cause of the crime. Even after a final verdict is issued and the victim’s case is confirmed, it still takes time for the victim to recover damages from the crime.
Kakao has stated that when an identity fraud case is reported, the company will promptly investigate the case on its own – completely independent of any law enforcement involvement – and if a customer turns out be an innocent victim, it will make amends to them beforehand.
Kakao has stated that when an identity fraud case is reported, the company will promptly investigate the case on its own – completely independent of any law enforcement involvement – and if a customer turns out be an innocent victim, it will make amends to them beforehand. (Image courtesy of Kakao Corp.)
Under discussion are detailed action plans for the program, how much compensation will be offered to victims, and how the follow-up management will be implemented to stave off additional occurences of fraud.
In 2015, Kakao Pay established its proprietary FDS (Fraud Detection System), built upon large troves of data and Artificial Intelligence technology. The system helps detect any fraudulent cases, such as suspicious transactions online.
Jerry M. Kim (jerry@koreabizwire.com)
