Mistaken money transfers in S. Korea exceed US$200 mil. in 2018
- 5 years ago
Time now for our "Life & Info" segment... where we focus on information useful for your everyday life.
With advances in online and mobile banking services in South Korea, there has been a steady rise in money transfers going to wrong accounts.
The amount exceeded 200 million U.S. dollars last year.
You best option to prevent this happening to you: it's quite simple, be careful and double... and maybe even triple check... before you hit 'send'.
Park Se-young has more.
With more people sending money using their computers and smartphones, …there's a higher risk of money being sent to the wrong account.
In fact, the amount of mistaken money transfers nearly doubled from 118 million U.S. dollars in 2014 to 203 million dollars in 2018.
Last year, 100-thousand money transfers were made to wrong accounts, …but only about half of the people who made the mistake got their money back.
Under the current law, banks cannot force the recipient to return the money.
If they refuse to send the money back, the only options are suing for embezzlement or restitution of unjust enrichment.
And if you can't get in touch with the account owner or if the account is repossessed, it's impossible to get the money back.
"If the person fortunately has assets, you may be able to get the money back. But if the person's money is taken away and they don't have any other assets, even lawsuits may not be able to help."
Amid the continued rise in such incidents, the government has stepped in with a proposal.
For transfers under ten million Korean won, …or 85-hundred U.S. dollars, …the Korea Deposit Insurance Corporation will return about 80 percent of the money to the initial owner and get that money back from the wrong recipient later.
"They don't get 100 percent back because it's their own mistake, and the system has operating costs."
Last December, the National Assembly proposed amendments to the Depositor Protection Act to back this.
However, some disagree with the idea of making up for individual mistakes using public funds.
Experts have pointed out that individuals should do whatever they can to prevent mistaken transfers.
People should check the name and account number carefully and it helps to bookmark frequently used accounts.
Also, a delayed transfer system can minimize damage as it gives users time to cancel their transactions.
Park Se-young, Arirang News.
With advances in online and mobile banking services in South Korea, there has been a steady rise in money transfers going to wrong accounts.
The amount exceeded 200 million U.S. dollars last year.
You best option to prevent this happening to you: it's quite simple, be careful and double... and maybe even triple check... before you hit 'send'.
Park Se-young has more.
With more people sending money using their computers and smartphones, …there's a higher risk of money being sent to the wrong account.
In fact, the amount of mistaken money transfers nearly doubled from 118 million U.S. dollars in 2014 to 203 million dollars in 2018.
Last year, 100-thousand money transfers were made to wrong accounts, …but only about half of the people who made the mistake got their money back.
Under the current law, banks cannot force the recipient to return the money.
If they refuse to send the money back, the only options are suing for embezzlement or restitution of unjust enrichment.
And if you can't get in touch with the account owner or if the account is repossessed, it's impossible to get the money back.
"If the person fortunately has assets, you may be able to get the money back. But if the person's money is taken away and they don't have any other assets, even lawsuits may not be able to help."
Amid the continued rise in such incidents, the government has stepped in with a proposal.
For transfers under ten million Korean won, …or 85-hundred U.S. dollars, …the Korea Deposit Insurance Corporation will return about 80 percent of the money to the initial owner and get that money back from the wrong recipient later.
"They don't get 100 percent back because it's their own mistake, and the system has operating costs."
Last December, the National Assembly proposed amendments to the Depositor Protection Act to back this.
However, some disagree with the idea of making up for individual mistakes using public funds.
Experts have pointed out that individuals should do whatever they can to prevent mistaken transfers.
People should check the name and account number carefully and it helps to bookmark frequently used accounts.
Also, a delayed transfer system can minimize damage as it gives users time to cancel their transactions.
Park Se-young, Arirang News.