South Korean Financial Authority Takes Action Against Cryptocurrency Voice Phishing

South Korea’s Financial Services Commission (FSC) has announced plans to crack down on voice phishing scams involving cryptocurrencies.

These scams have been on the rise in recent years, with losses incurred by victims reaching approximately 20 billion Korean won (US$15 million) in 2022, more than double the losses reported in 2020.

To tackle this issue, the FSC is planning to expand the current law on voice phishing to include phone scams related to cryptocurrencies.

This move will give authorities the power to freeze the crypto accounts of suspected offenders on exchanges when a voice phishing scam is reported. Currently, local authorities are unable to seize suspected accounts on crypto exchanges due to legal restrictions.

By amending the current law, the FSC hopes to recover losses incurred by victims of these scams. The ruling People Power Party and the FSC will propose amendments to the local voice phishing law in April, allowing financial institutions and crypto service providers to share account information and suspend all suspected accounts across different platforms.

Voice phishing scams are a common tactic used by scammers to trick victims into giving away their financial information or money.

These scammers often impersonate legitimate individuals or authorities to gain the trust of their victims. With the FSC’s efforts to combat these scams and protect investors in South Korea’s burgeoning cryptocurrency market, the country’s cryptocurrency ecosystem is likely to see positive effects.