SEOUL, May 20 (Korea Bizwire) – As financial frauds increase and personal information is frequently infringed due to phishing and hacking, a local bank launched a new bank account capitalizing on the people’s “worry” on the issue.
KB Kookmin Bank began selling the “KB Feel-at-home Bank Account” offering compensation insurance for damages from those financial frauds for free on May 19. The financial product was designed to ease the society-wide anxiety due to personal information leaks and is the first product linked to insurance compensating for the damage by phishing and hacking.
When a consumer opens an account in the “KB Feel-at-home Bank Account,” the bank offers the “Compensation Insurance for Financial Frauds by Phishing and Hacking” served by Hyundai Marine and Fire Insurance for six months without any charge. The insurance can be automatically renewed for every six months if the account holder has transactions like credit card payments, payroll deposits, debit card transactions or pension deposits during the period.
The insurance offers up to 5 million won in compensation for financial damages due to account balance withdrawals or credit card charges caused by phishing or hacking. The financial frauds covered by the insurance include phishing, smishing, pharming and memory hacking.
Especially, the insurance covers not only the feel-at-home account itself and other KB accounts, but accounts opened at other banks by the account holder. Customers using a non-Kookmin Bank as the main bank can be benefited from the insurance if they are qualified at certain requirements. However, the compensation can take a certain period time in case for financial frauds with accounts of other banks.
The account also exempts transaction fees for other banks or ATM machines after the operation hours if account activities like credit card payments, payroll deposits, debit card transactions or pension deposits occur within the account. The customers can enjoy not only the insurance service but transaction fee exemption as well.
An official at KB Kookmin Bank said, “Our new product aims at guaranteeing the safe financial service for our customers not being disturbed by financial frauds. We will expand plans to offer various services to fulfill our social responsibility as a financial institution.”
Written by John Choi (email@example.com)