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Korea ‘Voice Phishing’ Fraud

Criminal syndicates in Korea

Criminal syndicates in Korea use telephone and text messages to entice members of the public to transfer money, through ATMs, to their accounts. Once transferred, the money is immediately withdrawn. Unofficial figures suggest that, at its peak, more than 3,000 victims a year lost in excess of $30 million.

By enhancing our CDD processes, we launched a prevention programme. This approach proved so successful that, at the invitation of the local regulator, we were invited to share our practices with other local banks. It was eventually made a regulatory requirement.

But criminals regularly change their methods so, more recently, we have worked with a Task Force formed by the regulator to enhance our original prevention measures. We built a special monitoring system and share the intelligence generated across all the major local banks - keeping losses to the public at a minimum.

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Annual Report and Accounts 2009