Kakao Bank and Toss Bank are launching a protective system in collaboration with the Seoul Metropolitan Police Agency to prevent youth from transferring funds for online gambling. The police will share information on suspected gambling accounts with the banks, allowing them to block or issue warnings during the transfer process.
According to the financial sector on October 31, Kakao Bank and Toss Bank will officially operate the 'Youth Digital Safety System' starting November 2. The three institutions signed a memorandum of understanding (MOU) on September 29 to implement this initiative.
Under this system, the police will provide the banks with information on suspected gambling accounts obtained through investigations and interviews with school liaison officers. The banks will then verify this information using their own fraud detection systems (FDS) and take necessary actions, including blocking transfers.
The banks will respond differently to these situations. Toss Bank will display a warning message if a youth attempts to transfer funds to a risky account. If a minor under 17 proceeds with the transfer despite the warning, the bank will notify their guardian via text message. Kakao Bank will block transfers made by youths to corporate accounts identified as suspicious during its verification process.
Both banks plan to complete verification and take action on accounts reported by the police within one week. The financial apps will also feature warnings about risky transactions and a '117 Counseling & Help' button.
Youth seeking counseling will be referred to the 117 Center and school liaison officers, where they can access specialized gambling addiction diagnosis and counseling programs. In severe cases of addiction, they will be connected to hospital treatment.
As the issue of youth cyber gambling continues to grow, the need for preventive measures at the financial transaction stage has become increasingly urgent. A survey conducted last year by the Korea Center on Gambling Problems estimated that about 157,000 youths, or 4% of the youth population, have experienced gambling, with the average age of first exposure being 12.5 years.
Yoon Ho-young, CEO of Kakao Bank, stated, "We will continue our efforts to ensure that youths can experience a safer digital financial environment through prevention and protection measures." Lee Eun-mi, CEO of Toss Bank, also remarked, "We will fulfill our role as a bank to ensure that at-risk youths receive the necessary help by collaborating with the police."
* This article has been translated by AI.
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