The Industrial Bank of Korea (IBK) successfully caught two birds with one stone through artificial intelligence (AI) and platforms.
As financial authorities recently announced their plan to focus on preventing and managing cyber risk, more attempts will be made to combine IT technology and consumer protection in the financial industry in the future, observers say.
The Financial Supervisory Service (FSS) will conduct a total of 779 inspections — 30 regular inspections and 749 irregular inspections — in 2022, according to sources in the financial sector on Feb. 3.
In particular, the financial watchdog plans to focus on internal control and cyber risk at the digital financial and big tech sectors.
Analysts say that the FSS will zero in on inspecting consumer protection, such as systems for complying with the Financial Consumer Protection Act and non-face-to-face business systems.
“We will induce the establishment of an internal control system for platform-linked sales by checking compliance with six sales principles of the Financial Consumer Protection Act, which took effect last year, and checking whether consumer protection procedures for non-face-to-face sales procedures were established,” an FSS official explained.
The IBK’s AI-powered monitoring system.
This year’s inspections increased 65.1 percent compared to last year to 274. But the total number is expected to be at a level similar to that of the previous year, considering that all on-site inspections were suspended due to social distancing measures from July to October last year.
Recently, the IBK is drawing attention from those in the financial industry as its platform and AI-based financial consumer protection policies have paid off.
The bank announced that the number of fake deposit bank passbooks decreased by about 70 percent on-year as a result of establishing “Telecommunications Financial Fraud AI Monitoring System,” a voice phishing response program, in November last year and piloting it for three months.
The Telecommunications Financial Fraud AI Monitoring System is designed to detect and respond to voice phishing in real time by identifying suspected patterns after AI learns big data analysis and voice phishing cases.
The AI-powered system analyzes customers’ behavior and transaction patterns, and prevents financial accidents by automatically suspending withdrawal accounts if customers deceived by voice phishers attempt to withdraw more than five million won in cash at an IBK branch.
In fact, an IBK customer was deceived by a voice phisher and installed a malicious app on his smartphone, but the AI monitoring system detected abnormal transaction patterns and preemptively suspended the transaction to prevent damage.
“As a result of the pilot operation of the AI-based monitoring service, the number of fake deposit bank passbooks shrank by about 70 percent in January this year compared to the same period of last year,” an IBK official said.
“This successfully prevented a total of 750 cases, about 6.2 billion won in financial frauds.”
Rich Communication Suite (RCS) card-type texts to protect customers from text messages impersonating banks are also one of the new consumer protection policies of the IBK.
RCS is a communication protocol between mobile telephone carriers and between phones and carriers, aiming at replacing SMS messages with a text message system that is richer, provides phonebook polling for service discovery and can transmit in-call multimedia. It is part of the broader IP Multimedia Subsystem.
When the IBK sends a message to a customer through text messages using RCS technology, the IBK’s official logo and name are automatically displayed, even if an IBK number is not stored on the customer’s smartphone.
That makes it easy for the customer to distinguish it from texts from imposters. Long messages can be sent in a card type in order to increase customers’ convenience.
The IBK plans to send text messages linked to financial transactions such as loan interest details and authentication numbers and text messages from branches to customers through the RCS method.
Card-type RCS text messages can be received by any customer who uses smartphones from Samsung Electronics and LG Electronics without installing an application.
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