South Korea’s Financial Services Commission (FSC) is taking action against voice phishing scams involving cryptocurrencies.
In a bid to tackle the rising number of scams, the FSC announced on Tuesday that it plans to expand the current law on voice phishing to include phone scams related to cryptocurrencies.
The new law 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 FSC and the ruling People Power Party plan to propose amendments to the local voice phishing law in April, which will allow financial institutions and crypto service providers to share account information and suspend all suspected accounts across different platforms.
Voice phishing scammers often impersonate legitimate individuals or authorities to trick victims into giving away their financial information or money.
The FSC has revealed that voice phishing losses involving cryptocurrencies reached approximately 20 billion Korean won (US$15 million) last year, more than double the 8.26 billion won reported in 2020.
The new measures will give authorities more power to combat voice phishing scams and protect investors in South Korea’s burgeoning cryptocurrency market.
The FSC’s efforts to expand the existing law on voice phishing and recover losses incurred by victims will likely have a positive impact on the country’s cryptocurrency ecosystem.
