Bithumb Proposes Mandatory Voice Phishing Prevention Education by Government and Local Authorities

South Korea's cryptocurrency exchange Bithumb has proposed legislation requiring the national government and local authorities to implement mandatory voice phishing prevention education programs. This addresses gaps in prevention systems despite recent expansions of victim compensation to include digital assets.

Background

South Korea's cryptocurrency exchange Bithumb has proposed legislation to mandate voice phishing prevention education as a responsibility of national and local governments. Although the revised "Special Act on Prevention of Telecommunications Financial Fraud and Refund of Damaged Assets" (October 2024) expanded victim compensation to include digital assets and extended protections to cryptocurrency exchanges, educational systems to prevent fraud before it occurs remain inadequate.

How Voice Phishing Scams Work

Voice phishing is a fraud method where scammers impersonate bank employees, police officers, tax officials, or other authority figures through phone calls or voice communication platforms. They convince victims that urgent action is necessary. With the growth of digital asset platforms, scammers increasingly impersonate cryptocurrency exchange staff or exploit security concerns to coerce victims into transferring crypto assets.

Current Institutional Gaps

While current law mandates government collection of financial fraud information and early warning systems, it does not explicitly require government and local authorities to provide prevention education. This institutional gap hampers pre-emptive fraud prevention efforts.

Proposed Legislation

Bithumb recommends the following amendments:

Establishment of new legal provisions requiring national and local governments to implement mandatory voice phishing prevention education
Institutionalization of preventive education programs alongside post-fraud victim compensation procedures
Continuous information provision to digital asset users about emerging fraud methods

How to Identify and Protect Yourself

Warning Signs:

Unexpected phone calls or messages demanding urgent action
Callers claiming to be exchange staff requesting passwords or authentication codes
Requests to click suspicious links for account verification
Pressure created by claims of security breaches or account issues

Prevention Measures:

Independently verify the caller's identity by contacting the exchange or institution directly through official channels
Never share passwords, authentication codes, or private keys with anyone
Avoid clicking links from suspicious or unexpected sources
Remain calm and verify information before taking action, regardless of urgency
Contact your exchange's customer support immediately if you have doubts

Reporting Resources

South Korea National Police Agency: 112
Financial Supervisory Service: 1332
Individual exchange customer support teams: Refer to official exchange websites