South Korea Expands Anti-Phishing Crackdown With AI Detection and Faster Account Freezes

South Korea’s top financial regulator, Financial Services Commission (FSC), is stepping up efforts to combat online phishing and scam-related financial crimes through tighter inter-agency coordination, expanded account freezing powers, and enhanced AI-driven fraud detection systems.

Under new guidelines set to launch in June, banks and financial institutions will be allowed to impose emergency freezes of up to 72 hours on accounts suspected of being linked to emerging scam types, including romance scams and investment fraud. Previously, many of these scams fell outside traditional voice phishing classifications, limiting enforcement actions.

The FSC said financial firms, law enforcement agencies, and regulators will also establish more systematic information-sharing frameworks to detect mule accounts and suspicious transactions faster.

Authorities plan to upgrade sector-wide fraud detection systems this year, with industry-wide simulations scheduled by July before broader implementation in the third quarter.

A major focus of the crackdown is the expansion of the AI-based Anti-Phishing Sharing & Analysis Platform (ASAP), launched in October 2025. According to the FSC, the platform has already helped prevent around 47.5 billion won (US$31.5 million) in losses over the past six months.

During that period, over 317,000 phishing-related data points were shared among financial institutions, while transactions involving 5,261 suspicious accounts were halted.

The regulator also said voice phishing insurance products and additional victim protection measures will be introduced as part of broader anti-fraud initiatives.

FSC Vice Chairman Kwon Dae-young said authorities must remain flexible as phishing crimes rapidly evolve, stressing the need for faster information sharing and closer coordination between financial firms and law enforcement agencies.