South Korea is tightening oversight of fraudulent benefit claims on Modu's Card, a public transit subsidy program that has grown popular enough to surpass 6 million users.
The Metropolitan Area Transportation Commission under the Ministry of Land, Infrastructure and Transport said Wednesday it is revising the card's terms of service to prevent fraudulent claims and improve the fairness of fiscal support.
The revised terms define fraudulent benefit claims to include identity theft, the transfer or lending of cards or accounts, false registration of eligibility information, and unauthorized access through hacking or other illicit digital means.
When fraud is suspected, refund payments will be withheld and the member notified. The case will then go through a process of explanation, review and payment determination.
Confirmed violations will trigger escalating penalties: a first offense results in a one-month service suspension, a second in a three-month suspension, and a third leads to permanent membership revocation along with a one-year ban on re-enrollment. For serious cases involving organized or repeated fraud, the re-enrollment ban may be extended to up to three years.
Refunds already paid to fraudulent claimants will be recovered or deducted from future payments. Authorities may also pursue additional measures under relevant laws, including referrals to investigative agencies.
Before a fraud determination is made, users will be informed of the relevant details and given 14 days to submit an explanation. Those subject to service suspension or refund recovery may file an appeal within 30 days of receiving notice.
"We will manage fraudulent claims strictly while carefully protecting the rights of users who use the service legitimately," Metropolitan Area Transportation Commission Chairman Kim Yong-seok said. "Through this revision, we will operate a fair public transit support system that everyone can trust."
smh@heraldcorp.com
