On Dec. 11, SK FSS said fraud damage will be paid by financial firms.
SK FSS held final review meeting on the implementation of a voluntary compensation system for non-face-to-face financial accidents in the secondary finance sector.
Follows SK FSS Oct. 2023 issued fraud detection operation guidelines, see #186963.
Also follows SK FSS Dec. 2023 issued double safety net for consumers, see #196357.
Overview of Voluntary Compensation System
SK FSS developed common fraud detection system (FDS) rules by each secondary finance sector, bolstered detection and responsiveness to suspicious transactions.
Plus, established standards for responsibility sharing by sector, and a business manual re applications for compensation, review of applications, compensation payment.
As per the standards, consumers who suffer financial damage from non-face-to-face financial accidents occurring after Jan. 1, 2025 can apply for damage compensation.
The amount of compensation will be determined by considering financial firms' efforts to prevent accidents and the level of negligence of consumers, excluding the amount of damage refund under the Telecommunications-based financial fraud and refund act.
Consumers must submit documents to financial companies, including an application for compensation, investigative agency-issued accident confirmation, and statement.
Next Steps
Securities houses, savings banks, individual cooperatives will implement a voluntary compensation system for non-face-to-face financial accidents from Jan. 1, 2025.
SK FSS will provide support in regular consultations with the secondary finance sector.
