Right after a scam transfer, request payment suspension first, and file the damage relief application within 3 business days

Whom to contact

Call 112, or contact the customer center of the bank you sent money from or the bank of the receiving account. Whichever you notify, the banks share information and suspend the other account (Article 3(4) of the Special Act on the Prevention of Telecommunications-Based Financial Fraud and Refund of Fraudulently Obtained Assets).

If the money went to several accounts, you must report every single account. If you report only some, money may still be withdrawn from the others.

The 3-business-day deadline

If it is urgent, you may apply for damage relief by phone or orally. In that case, however, you must submit a damage relief application and a copy of your ID to the bank within 3 business days from the date of application (Article 3(2) of the Enforcement Decree).

If you miss this deadline, the bank will notify you to submit the documents again within a 14-day period. If you miss that period too, the phone application is treated as never having been made (Article 3(3)). Banks sometimes ask for a police confirmation of the damage report, that is, a certificate of incident report, so it is best to report to the police on the same day as well.

The process that follows payment suspension

1. Payment suspensionIf there is reason to suspect the account was used for fraud, the bank suspends the entire account and notifies the account holder and the victim (Article 4).
2. Public notice of the start of the claim-extinguishment procedureAt the bank's request, the Financial Supervisory Service publishes a notice that the procedure has begun (Article 5).
3. Claim extinguished 2 months after the noticeThe account holder's deposit claim is extinguished (Article 9). The account holder may object within 2 months.
4. Payment of the damage refundOnce the Financial Supervisory Service sets the amount, the bank pays the victim. If there are several victims on one account, it is divided in proportion to each loss.

If the balance is only a small amount set by Presidential Decree (within KRW 30,000 or less), the claim-extinguishment procedure does not start automatically. In that case, you must ask the bank directly to start it before 30 days have passed after receiving the payment suspension notice (Article 5(1)6).

If payment suspension is refused or lifted

"Telecommunications financial fraud" as defined in the Act does not include acts disguised as the provision of goods or services (proviso to Article 2(2)). Schemes disguised as loans, on the other hand, are included.

For scams that take the form of a transaction, such as investment "leading rooms," fake exchanges, and online stores, banks often apply this proviso to refuse suspension or to lift a suspension already in place. Banks also differ in how they assess team-mission scams.

In that case, the refund system cannot be used, and what remains is provisional attachment and a damages lawsuit through the court. The balance can be withdrawn the moment the suspension is lifted, so if you learn that it has been lifted, file for provisional attachment without delay.

What changed with the October 2, 2026 amendment

With the amendment, the word assets was added to the title of this special act, which became the Act on Special Cases Concerning the Prevention of Damage Caused by Telecommunications Financial Fraud and Refund of Damaged Assets. Acts that induce victims to transfer virtual assets, or to hand over means holding virtual assets, were added to telecommunications financial fraud, and user accounts opened at exchanges are also treated as "accounts used for fraud, etc." and made subject to suspension and refunds.

The addenda apply the amendments concerning virtual asset losses to incidents that occurred before the amendment took effect. If you sent crypto in the past and were refused payment suspension, check whether this amendment changes the outcome.

Frequently Asked Questions

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Written on the basis of Korean statutes in force (National Law Information Center, Ministry of Government Legislation) and court precedents as of October 20, 2026. Results may differ with amendments to the law or the facts of each case. This page is general information, not legal advice.

Written and reviewed by Attorney Dongwoo Shin — Ph.D. in Law; certified criminal law specialist and certified divorce law specialist registered with the Korean Bar Association. He handles each case personally from consultation to judgment. About the attorney →
Last updated October 20, 2026