SEOUL, March 11 (Korea Bizwire) — A new FDS (Fraud Detection System) designed to enhance security for mobile phone micropayment will be introduced by the Ministry of Science, ICT and Future Planning (MSIP) in the second quarter, according to an announcement from the ministry on March 10.
The FDS will be working as an automatic detector of any abnormal transactions, such as extensive, repeated purchases of a single commodity, or purchases in countries or regions without any previously established transaction history. Upon detection, the FDS pushes a voicemail to users that requests self-authentication, and declines the payment if the user fails.
The MSIP has implanted several measures to prevent fraud regarding mobile micropayment, such as standardizing web environments for micropayment, and introducing an SMS payment notification system March last year. As a result of the efforts, the number of fraud cases related to mobile micropayment in the year since the new measures took effect was 27,808, a decrease of 85.1 percent from 186,889 in the previous year.
Overall sales via mobile micropayment increased from 3.66 trillion won (US$ 3.24 billion) to 3.96 trillion won (US$ 3.51 billion) over the last six months. Although the number of fraudulent app distribution cases has increased from 2,351 in 2013 to 4,048 in 2014, the actual amount of damage resulting from such distribution decreased from 4.8 billion won (US$ 4.25 million) to only 380 million won (US$ 337,000).
By Kevin Lee (email@example.com)