6 banks to integrate AI systems into joint model to better fight voice phishing

Financial firms strengthen regulations, education to protect consumers, especially older adults

By Jun Ji-hye

Six banks are participating in a joint project led by the Financial Security Institute (FSI) to develop a shared artificial intelligence (AI) model by integrating their individual systems, aiming to enhance voice phishing detection, the FSI said Thursday.

Integrating the fraud response capabilities and cases of the six banks, including Kbank and Toss Bank, is expected to significantly reduce voice phishing-related damages, it said.

The FSI is a nonprofit corporation established to serve as the dedicated security organization for the financial sector and is funded by membership fees from financial institutions.

The project comes as methods of voice phishing scams continue to evolve with technology, making them more challenging to combat.

The FSI said the initiative uses advanced AI technology called federated learning to expand the scope of fraud detection efforts beyond individual institutions to a collaborative system across the financial sector, strengthening overall anti-fraud capabilities.

Federated learning is a distributed learning technology that allows multiple participants to develop an AI model by contributing their data. Each participant trains their AI model independently without sharing raw data, and only the trained models are integrated to create a unified system.

“True innovation and competitive advantage can only be achieved on the foundation of strong security,” FSI Director Park Sang-won said.

According to the National Police Agency's statistics, 20,839 voice phishing cases were reported last year, with cumulative losses surpassing 5 trillion won ($3.5 billion).

Industry officials note that phishing schemes are becoming increasingly sophisticated, making it difficult for individuals to protect themselves through awareness alone.

In particular, as scams targeting older adults continue to rise, financial institutions are strengthening education programs tailored to them.

Heungkuk Life Insurance held a training session at a senior welfare center in Seoul's Dongdaemun District on Wednesday as part of its voice phishing prevention campaign.

It introduced the latest phishing tactics, such as sending malicious links disguised as wedding invitations, obituary notices, health check-up results and package delivery updates. It advised participants to report any suspicious incidents immediately to the police or the financial institutions they use.

The training will be conducted two more times throughout February, with approximately 220 older adults from the welfare center expected to participate.

“By using real-life cases in an interactive format, we aimed to make the training easier for seniors to understand and apply in their daily lives,” Oh Se-il, the insurer’s managing director who heads its consumer protection office, said. “We will continue expanding consumer protection initiatives to prevent financial fraud.”

Meanwhile, in response to the recommendation of the Financial Supervisory Service, the country’s financial watchdog, to strengthen voice phishing regulations, banks have been introducing additional verification procedures to confirm the purpose of large cash withdrawals by older customers.

KB Kookmin Bank has mandated since July last year that customers aged 60 and older must complete a voice phishing prevention questionnaire when withdrawing 5 million won or more.

“The measure is aimed at strengthening withdrawal procedures to enhance customer protection and prevent increasingly sophisticated financial fraud,” a KB Kookmin Bank official said.

Most banks have implemented similar measures, although the specific criteria, such as withdrawal amounts and age requirements, vary.

Banking industry officials stressed that the purpose of the prevention questionnaire is not to investigate how customers intend to use their money but to help identify potential voice phishing attempts and prevent financial losses in advance.

Law enforcement authorities are also joining the fight against voice phishing.

The voice phishing reporting call center, which has been in operation for over four years under the Seoul Central District Prosecutors’ Office, has recently been relocated to the Supreme Prosecutors’ Office.

The call center has been transferred to the organized crime division of the top prosecutors’ office, which specializes in voice phishing crimes. The number of dedicated investigators has also increased.