Science & Tech · Cybersecurity · 1 hr ago
South Korea considers refunds before responsibility is settled for online payment fraud
South Korean financial regulators and online payment firms are considering refunding consumers before responsibility is decided after unauthorized online payments.
The proposal covers cases such as hackers stealing account details and using them to make purchases.
The aim is to prevent victims bearing losses while investigations take time to determine which business is responsible.
The discussion comes amid concerns that stolen personal information could lead to further financial harm, including fraudulent purchases.
Regulators are looking at approaches in the United States and Britain, where rules provide for temporary or prompt refunds in some cases.
A public-private working group is reviewing the proposal and may set out its views later this year.
The system is not yet in place, and questions remain about which businesses should pay and how to handle cases involving consumer negligence.
South Korea’s financial authorities and payment businesses are considering refunding consumers for fraudulent online payments before responsibility is determined.
The proposal is intended to prevent victims from bearing losses while companies investigate who was at fault.
The Financial Supervisory Service has asked a public-private working group to examine the idea and help develop standard guidelines.
The discussion comes amid concerns about data theft and follow-on financial losses from hacked or hijacked accounts.
Questions include how responsibility would be divided among businesses and how to handle cases involving consumer intent or gross negligence.
- Who
- South Korea’s financial authorities and online payment businesses are considering the proposal.
- What
- They are examining whether businesses should refund losses from fraudulent online payments before responsibility is settled.
- When
- The Financial Supervisory Service referred the issue to a working group recently; views could be prepared within the year.
- Where
- South Korea.
- Why
- To reduce losses consumers bear while investigations determine responsibility and to protect them from follow-on financial harm after data theft.
This story does not have two clearly opposing sides.
The Financial Supervisory Service asked the online fraudulent payment response working group to examine advance refunds for consumers.
The article says the group may complete a degree of review if discussions proceed as planned.
- Proposed measure
- Refund consumers before responsibility is determined
- Lead agency
- Financial Supervisory Service
- Working group
- Online Fraudulent Payment Response Consultative Body
- Possible review timing
- Within the year
- South Korea PG payment average
- 1.7234 trillion won per day in the first half of 2026
What people are saying
We plan to convey the advisory opinions to the currently operating online fraudulent payment response consultative body so that the relevant content can be fully reflected in discussions to prepare standard practical guidelines.