The financial regulator said Friday it launched a new centralized program to allow consumers to opt out of credit services. (Image courtesy of Yonhap)
SEOUL, Aug. 23 (Korea Bizwire) — The financial regulator said Friday it launched a new centralized program to allow consumers to opt out of credit services, such as taking out new loans, a move aimed at preventing potential damage from voice phishing scams.
More than 4,000 financial institutions have signed up for the new “credit transaction safe block” service so far, allowing their customers to block any future loans without their knowledge or approval, according to the Financial Services Commission (FSC).
“Voice phishing crimes are continuing to cause more damage by inducing victims to download spy applications and taking out loans after stealing their personal information,” FSC chief Kim Byoung-hwan said in a ceremony held at a Nonghyup Bank branch in Seoul, marking the launch of the new program.
“Starting today, a new service will be launched where consumers can block fresh loans easily and in advance, and their decision to opt out will be shared by all financial institutions,” he added.
Consumers can sign up for the opt-out program at their own banks or any other major financial institutions, including post offices, according to the financial regulator.
Any future attempts to take out a new loan at any financial institution will be blocked unless the consumer personally visits the financial institution to cancel the opt-out service, it added.
Financial regulators earlier said damage from voice phishing crimes amounted to over 196 billion won (US$146 million) in 2023, up more than 35 percent from a year earlier.
(Yonhap)
