Banks push back against proposed no-fault compensation for voice phishing victims

The government is pressing ahead with plans to introduce a no-fault compensation scheme that would require banks and other financial firms to reimburse victims of voice phishing scams regardless of whether they were at fault, despite mounting industry opposition, according to officials Sunday.

Banks argue the measure unfairly holds them liable for crimes they neither have the authority nor the means to investigate, warning that the additional costs could ultimately be borne by consumers through higher fees or less favorable lending rates.

Financial Services Commission Chairman Lee Eog-weon reaffirmed the government’s commitment to the initiative at a meeting last month with the heads of Korea's five largest financial groups — KB, Shinhan, Hana, Woori and NH NongHyup.

“We will actively pursue the introduction of a no-fault liability system to strengthen the financial sector’s accountability for phishing crimes and provide more effective relief for victims,” Lee said.

Two bills incorporating the measure are pending in the National Assembly.

With the financial regulator throwing i ...