The Rise of Voice Phishing: Is Financial Education Keeping Up?

Recent news and films often evoke a sense of unease. The barrage of phone calls and text messages can make it difficult to enjoy daily life. From the movie "Voice" to reports of voice phishing-related deaths, and the prevalence of romance scams and online fraud, financial crime has infiltrated our everyday existence. During the day, unsolicited calls about insurance and mobile phone upgrades flood in, while weekends bring requests to participate in various election polls. Stock trading advertisements constantly appear via text messages. Even when we block numbers or filter certain words as spam, our peaceful routines and sometimes our finances are repeatedly disrupted.

Financial literacy among adults in South Korea is not as high as one might expect. As finance becomes increasingly complex and shifts toward online and non-face-to-face interactions, financial understanding continues to decline. While it is slightly above the OECD average, the downward trend persists, particularly among young adults in their 20s, seniors in their 70s, and low-income groups.

A significant reason for financial victimization is the allure of profit. Many individuals are tempted by the prospect of high returns from high-risk investments, often lured by promises of quick wealth. The sophistication of voice phishing tactics has also increased with advancements in AI and digital technology, leading to a rise in reported cases.

In response, financial education will be introduced in high schools this year through a new curriculum titled "Finance and Economic Life." While financial subjects have existed in some form, they were previously included in the 2022 revised curriculum as elective courses in high school social studies.

The current textbooks are divided into four main sections: 1) Happy and Safe Financial Living, 2) Income and Expenditure, 3) Saving and Investment, and 4) Credit and Risk Management. Historically, high school economics textbooks have been around 200 pages, and the new financial textbooks are similarly structured, with each section comprising about 50 pages. However, considering real-world applications, the content and length should be adjusted for practicality.

There is a pressing need for a continuous financial education program from elementary through high school. Finance can yield profits but can also lead to losses. Nowadays, even elementary students can obtain debit cards, and many middle schoolers use credit cards. Some families even gift stocks during holidays. However, there are limitations to providing systematic and realistic financial education at home. Therefore, financial education should begin at a younger age, tailored to students' comprehension levels.

High school financial education should not remain an elective but should be mandatory for all students. In reality, subjects that do not impact college admissions are often less favored by students. Reports indicate that the selection rate for economics courses is not high. However, finance significantly affects both individuals and businesses. Thus, financial courses should be offered on a Pass/Fail basis, regardless of their impact on college admissions, and should be included in graduation requirements. Schools with low enrollment numbers that struggle to offer electives could consider partnering with nearby universities or inviting financial experts to provide practical financial education. More advanced theoretical education can be addressed in college courses later.

Financial education must encompass not only potential profits but also the risks of loss. Traditional economic education often focuses on the "positive realm" where everyone benefits. However, behavioral economics and behavioral finance emphasize concepts like prospect theory, loss aversion, and sensitivity. Financial education should not merely convey textbook content mechanically but should be grounded in real-world examples for practical understanding.

Finance plays a crucial role in individuals' lives. Therefore, financial education should be continuous and realistic from an early age. There is an increasing need for financial education in schools that aligns with real-world scenarios.