FSS launches 'Burner Phone Zero' system to neutralize illegal loan sharks' calls within 3 days

The Financial Supervisory Service is launching a system called "Burner Phone Zero" that can neutralize burner phones used by illegal loan sharks within three days.

The FSS said Sunday it will activate the Auto Warning Call System, or AWCS — dubbed "Burner Phone Zero" — to block outgoing calls from burner phones linked to illegal private lending operations before formally suspending the phone numbers. The move comes as debt collection abuses have persisted even after the FSS expanded the scope of number suspension orders to cover high-interest lending and illegal debt collection.

Once a suspension request is filed, the FSS will review whether the number meets the criteria, activate the AWCS and then proceed with the formal suspension.

Under the process, a complainant submits a request through the FSS website to suspend a phone number used for illegal lending — including high-interest loans and unlawful debt collection — along with supporting evidence. The FSS then reviews whether the number qualifies for suspension on grounds such as predatory lending or illegal collection practices.

Once activated, the system floods the illegal lender's phone number with calls placed every two to three seconds, effectively blocking the operator from making harassing or coercive calls. The FSS then requests the Ministry of Science and ICT to suspend the number, and the suspension takes effect after the ministry completes its review.

The FSS said the system will cut the time from a complaint to a full halt of outgoing calls — previously around seven days — to roughly three days.

"We expect the system to swiftly neutralize burner phones used for illegal lending and debt collection, eradicate phone-based illegal activity, and significantly ease the psychological burden on victims," an FSS official said. "We will continue monitoring illegal private lending and do our utmost to minimize harm by quickly blocking the tools used for illegal activity."

Meanwhile, the FSS revised and published a "fraud prevention encyclopedia" in June together with the Korea Federation of Banks, compiling major financial fraud cases and tips on how to respond, as part of efforts to prevent voice phishing crimes.