Seoul: Regulator curbs fraud in ATM transactions

The FSC explained that the measure is aimed at curbing the increasing number of financial scams that use telephones and ATMs.

The new rule follows a recent series of scams committed by foreigners on temporary visits to Korea, the FSC said.

The maximum amount of money that an individual can currently transfer to another bank account in a single day by using ATMs is 50 million won (US$54,000) and there is a limit of 10 million won ($10,000) per day on cash withdrawals from the machines.

"The new limit will be applied to both Korean and foreign ATM users," said the FSC spokesman.

The money available from Korean ATMs far exceeds the amount available in other countries such as the United States, where the maximum limit stands at $1,000, the maximum amount an individual can transfer to another bank per day in Taiwan.

Stronger regulations are also to be imposed on temporary foreign visitors when they open accounts with Korean banks. The new policy will require them to state the period of their stay and the purpose of their visit when they open a new bank account.

Three Taiwanese and three Chinese were arrested last May on charges of banking fraud in which they earned 500 million won in three weeks after deceiving 50 people on the telephone. The fraudsters pretended to be investigative authorities and also claimed that the victims would receive tax refunds.

The arrested Taiwanese confessed that they targeted Koreans because the ATMs in Korea allow larger bank withdrawals.

Between January and May 2007, a total of 3,400 Koreans became victims of telephone fraud, which totalls 23.8 billion won ($25 million) in losses, the National Police Agency found.

By Jeong Hyeon-ji

The Korea Herald, Asia News Network