Jun Ji-hye, a reporter at the finance desk of The Korea Times, focuses primarily on economic policy and government agencies, mainly covering the Ministry of Finance and Economy, the Ministry of Budget and Planning, the National Tax Service and the Korea Customs Service. She previously covered financial authorities, including the Financial Services Commission and the Financial Supervisory Service, and earlier worked on the political, city and business desks, reporting on a wide range of issues.
Kbank to offer industry’s first full compensation for identity theft
gettyimagesbank
By Jun Ji-hye
Kbank will launch a new service aimed at protecting customers from financial fraud and offering full compensation in cases of identity theft, the internet-only bank said Monday.
The new service, which takes effect on Tuesday, introduces enhanced identity verification procedures such as video calls or facial recognition whenever users change their mobile devices. Should any losses arise from identity theft despite these measures, Kbank will provide full compensation.
The firm noted that although several financial institutions operate compensation programs for fraud victims, this is the first to guarantee full reimbursement of the entire amount.
Identity theft scams typically involve tactics such as posing as a family member or a credit card courier, or using phishing or smishing (a form of phishing using text messages) to steal personal data or identification documents. The fraudsters then open a mobile device under the victim’s name, install financial apps and withdraw money using the stolen identity.
The bank explained that by requiring additional identity verification when users change or newly register a mobile device before accessing its app, it can directly confirm the user’s identity and prevent identity theft in advance.
The bank said its promise to fully reimburse losses, even after the verification process, reflects its confidence in its customer protection and security systems.
The service is offered at no cost to all of its customers.
“Amid growing nationwide concern over identity theft, we will do our best to provide a safer financial service environment for our users,” a Kbank official said.