Korea Solves the Identity Theft Problem
South Korea gets it:
The South Korean government is introducing legislation that will make it mandatory for financial institutions to compensate customers who have fallen victim to online fraud and identity theft.
The new laws will require financial firms in the country to compensate customers for virtually all financial losses resulting from online identity theft and account hacking, even if the banks are not directly responsible.
Of course, by itself this action doesn’t solve identity theft. But in a vibrant capitalist economic market, this action is going to pave the way for technical security improvements that will effectively deal with identity theft.
The good news for the rest of us is that we can watch what happens now.
Ed T. • December 14, 2005 7:46 AM
“Under the new legislation customers will still be required to implement safety measures and won’t be compensated for losses incurred from online scams if they are careless with card details, PINS and passwords.”
Sounds like they only partially ‘get it’. While this makes sense, the institution could claim that the scammee was ‘careless’ for going to a phishing site and inputting their account creds. Same if someone shoulder-surfed their PIN at an ATM. And, in the USA, I suspect that is exactly what would happen.
But, at least it is a start.
-EdT.