How to apply for remedy for loss
Remedy application of victim
- The victim, as a person that has suffered economic loss due to telecommunications-based financial fraud (hereinafter referred to as “victim”), may apply for the remedy of damages caused by telecommunications-based financial fraud, such as suspension of payment from an account exploited for fraud, to the financial company that manages the account from which the amount of damage has been remitted or transferred or the financial company that manages the account exploited for fraud (Subparagraph 3 of Article 2 and Article 3(1) of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
Procedures for application for remedy for loss
Submission of application for remedy for loss, etc.
- A victim intending to apply for loss remedy should attach the copy of identification of the victim to the loss remedy application (Form 1 of Annex of “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”) and submit to the relevant financial company (Article 3(3) of the ”Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss” and main text of Article 3(1) of the “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
- However, the victim may apply by phone or verbal request where it is urgent or in extenuating circumstances (proviso of Article 3(1) of the “Enforcement Decree of the Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
Request for suspension of payment
- Where the amount of damage has been remitted or transferred to an account exploited for fraud of other financial company, the financial company which has received an application for the remedy of damages has to provide the relevant financial company with necessary information and request the same to suspend payment (Article 3(2) of the ”Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).
Sanctions for violation
- Applying for the remedy of damages or requesting suspension of payment deceitfully is punished by imprisonment with labor for up to three (3) years or by a fine not exceeding 30 million won (Subparagraph 1 and Subparagraph 2 of Article 16 of the “Special Act on the Prevention of Loss Caused by Telecommunications-based Financial Fraud and Refund for Loss”).