http://times.hankooki.com/lpage/biz/200612/kt2006120519175511870.htm By Na Jeong-ju Staff Reporter 12-05-2006 Financial service providers will be required to insure customers accounts to cover financial damage caused by hackers and financial accidents beginning next month, the Financial Supervisory Service (FSS) said Tuesday. The FSS will make it compulsory for banks to sign insurance contracts that can cover financial damage of up to 2 billion won in the case of hackers and electronic system breakdowns. The policy is in line with toughened regulations on online financial transactions that will take effect beginning January. Commercial banks, the Industrial Bank of Korea and the National Agricultural Cooperative Federation must provide insurance that covers damage up to 2 billion won. The Korea Development Bank, the Korea Post and the National Federation of Fisheries Cooperatives must have insurance coverage of up to 1 billion won, while securities firms and stock-related financial firms must have coverage of 500 million won. Insurance companies must have policies that cover damages of up to 100 million won. The government is moving to oblige financial institutions to compensate consumers for virtually all financial losses from hackers intrusions into online financial accounts and personal data. Even if financial firms are not directly responsible for the hackers damage, banks and non-banking institutions should compensate customers for the damages from electronic break-ins. The FSS believes the measure would alleviate fears of some 23 million Korean e-banking, phone banking and automatic telling machine (ATM) users over incurring monetary losses due to online identity theft, account intrusion attacks and consumer personal information hacking. _____________________________ Subscribe to InfoSec News http://www.infosecnews.org/mailman/listinfo/isn
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