Woori Bank is taking proactive measures to combat evolving financial fraud by leveraging artificial intelligence (AI) and specialized personnel. The bank plans to enhance its existing Financial Transaction Monitoring System (FDS) by integrating login information, product usage data, and risk account information to detect signs of fraud ahead of time.
On October 12, Woori Bank held a press conference in its headquarters in Jung-gu, Seoul, to unveil its response system and share examples of fraud prevention.
Jeon Jae-hong, head of Woori Bank's Financial Fraud Prevention Department, emphasized the importance of preemptive measures, stating, "Once the funds are transferred to fraudsters, it becomes difficult to trace the money as it is often dispersed into multiple accounts or converted into virtual assets." Jeon is the first financial fraud prevention expert hired from the police force in the banking sector.
According to statistics from the National Police Agency, the amount of financial fraud in South Korea surged from 791.1 billion won in 2022 to 2.3755 trillion won in 2025, nearly tripling in three years. In contrast, the refund rate for voice phishing victims has remained at around 22% from 2022 to the first quarter of this year.
In response, Woori Bank is strengthening its fraud prevention organization and expertise. It has established a Financial Fraud Prevention Department under its Consumer Protection Group, staffing it with 25 personnel. The bank is also considering creating a dedicated team for fraud prevention staffed by former police officers.
Woori Bank has enhanced interdepartmental collaboration by sharing suspicious information identified by the FDS with its Anti-Money Laundering (AML) department. When the FDS detects unusual transactions, it verifies the customer's identity and the purpose of the transaction in real-time. If suspicions remain, the transaction is delayed or blocked. Jeon noted that the bank is taking immediate action on suspicious transactions.
Looking ahead, Woori Bank plans to upgrade its FDS, which currently relies on traditional financial transaction data, to a generative AI-based system to respond more swiftly to new types of financial fraud. The bank will integrate a wide range of data, including login information, product usage, risk account information, and communication data, using generative AI to analyze new fraud patterns and anomalies for developing detection scenarios and policies. A new AI monitoring system is set to launch in November, with plans for stabilization by the end of the year.
Woori Bank CEO Jeong Jin-wan stated, "We will strengthen our prevention system to detect warning signs before customers' funds fall into the hands of fraudsters, rather than just focusing on recovery after damage occurs."
* This article has been translated by AI.
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