Shinhan Life upgrades fraud detection system to block suspicious transactions in real time

Shinhan Life has upgraded its fraud detection system, known as FDS, to identify suspicious voice phishing transactions in real time and intervene before any financial damage occurs.

The insurer said Friday it has built and launched a new FDS that draws on voice phishing suspect data shared among relevant agencies and affiliates within the financial group to strengthen its fraud prevention capabilities.

Development of the system began in March and took about five months. The upgrade expands the detection and blocking functions of the existing system in line with a recently revised law on reimbursing telecommunications fraud victims, which established a framework for financial institutions, telecommunications companies and investigative agencies to share voice phishing suspect information.

The new FDS analyzes connection data and transaction records in real time across key stages of a customer's activity — from login through insurance payout requests. When a transaction is flagged as suspicious, the system responds according to the assessed risk level by requiring additional authentication, restricting the transaction, notifying the customer or sending an SMS alert.

An integrated monitoring interface and a visual management dashboard allow staff to handle the entire response process on a single screen. The system is also designed to accommodate new voice phishing tactics quickly, allowing detection scenarios to be added or existing thresholds adjusted as new methods emerge.

The FDS is connected to Shinhan Financial Group's joint anti-fraud framework. The company said it plans to feed voice phishing suspect data gathered across group affiliates into the FDS, linking information sharing and anomaly detection across subsidiaries.

"As voice phishing tactics grow increasingly varied and sophisticated, the ability to detect suspicious transactions quickly and respond in a timely manner is critical," a Shinhan Life official said. "We will continue building an environment where customers can use our insurance services with confidence, knowing their assets are protected by a dedicated FDS and a coordinated group-wide response system."

Meanwhile, Shinhan Financial Group has been piloting a "one-stop voice phishing response service" since April 10, with Shinhan Bank, Shinhan Card, Shinhan Investment and Shinhan Life all participating. Under the arrangement, when Shinhan Bank detects a suspicious transaction, it instantly shares the integrated group ID, transaction type, date and time, and risk level with the other affiliates.