SK Telecom, Korea’s largest mobile carrier, has launched a service that will ensure consumers receive compensation when hit by financial fraud via mobile networks.

The service, named “Safe and Joy,” will offer its customers compensatory damages of between 1 to 3 million won, which they can use to take legal action, should they fall victim to voice and messenger phishing, and credit card misuse.

Parents of Safe and Joy’s customers who had been exposed to such fraud can also receive the same financial benefit from SK Telecom, the company said. This is the first time a telecom company in Korea has launched such a service.

The telecom firm said that this is part of efforts to help protect consumers from a growing number of mobile frauds while there are a very few services providing preventive or compensatory measures.

Voice or messenger phishing are committed by people posing as workers affiliated with legitimate businesses to obtain personal information such as registration, credit card or PIN numbers to steal money.

The telecom company said it hopes it can further protect the elderly especially, who have been most vulnerable to such fraud.

By Park Hyong-ki (hkp@heraldcorp.com)