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Financial firms adopt AI, bolster customer education to fight phishing, fraud
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By Jun Ji-hye
A 70-year-old homemaker surnamed Kim, who lives in Suwon, Gyeonggi Province, recently received a phone call from someone impersonating a prosecutor.
The caller told her that her bank account was linked to criminal activity and urged her to transfer her assets to a "safe" account. Alarmed, Kim followed the instructions and was prompted to install a specific mobile application on her smartphone.
According to the scammer's guidance, she then called her bank to request the necessary transaction. During the call, the bank’s voice analysis system's artificial intelligence (AI) detected abnormal emotional patterns in Kim’s voice, including signs of fear and anxiety.
Sensing something suspicious, the banker halted the transaction and verified the situation, preventing a financial crime before it was too late.
Financial institutions are ramping up their efforts to safeguard vulnerable customers by enhancing scam detection technologies and broadening educational outreach.
Samsung Life Insurance has rolled out the industry's first AI-based voiceprint verification system, which analyzes a customer's voice in real time and compares it with previously recorded call data to determine if the speaker is the legitimate account holder.
When the system detects anomalies, the consultation is immediately suspended, allowing the company to prevent potential fraud in non-face-to-face transactions.
ATMs of major banks are installed in Seoul, June 22. Yonhap
Shinhan Bank has become the first in the banking sector to deploy AI-driven ATMs that detect unusual customer behavior.
These machines use data gathered from voice phishing cases to identify suspicious actions such as speaking on the phone during a transaction or wearing items like sunglasses or hats. When such behavior is detected, the ATM issues a cautionary message to alert the user before the transaction proceeds.
Among credit card issuers, Shinhan Card's SOL Pay app incorporates an in-app feature called Phishing Eyes, which identifies malicious software, including remote control and tampered apps as well as text message scams, also known as smishing. In the past year, this technology has helped identify 218 voice phishing attempts in advance, preventing financial losses estimated at around 3.5 billion won ($2.5 million).
Similarly, NH NongHyup Card provides a malicious app detection service via its NH Pay platform.
Educational and promotional activities are also underway to directly reach vulnerable populations who face higher risks.
Shinhan Life offers a financial education program tailored for older customers in their 60s and 70s who may struggle with digital technology. The program educates participants on their financial rights, important considerations when enrolling in insurance and ways to detect and avoid insurance scams.
A voice phishing prevention campaign hosted by Heungkuk Life is held for residents at a senior welfare center in Seoul’s Seodaemun District, June 19. Courtesy of Heungkuk Life
Heungkuk Life has also launched a voice phishing prevention campaign targeting older adults. The campaign raises awareness about different phishing techniques, shares real-life cases and provides guidance on how to prevent fraud.
Financial authorities, for their part, are collaborating with financial institutions to formulate a comprehensive strategy to combat voice phishing. One key initiative involves creating a centralized database allowing AI to proactively freeze suspicious accounts.
"With the increasing sophistication of criminal methods, a variety of technological solutions are necessary to develop effective countermeasures," an official from the Financial Supervisory Service said. "Having a centralized control system for information will significantly enhance the speed of loss prevention."