Kakao Pay made an equity investment in ‘The Cheat (CEO Kim Hwarang)’, a financial fraud prevention social venture to protect financial consumers. Kakao Pay said it decided to invest to further strengthen financial fraud prevention and alternative credit rating solutions, and to solidify collaboration between Kakao Pay and The Cheat.
Both companies are preparing to apply The Cheat’s financial fraud prevention solution to Kakao Pay service. When making account, friend, or code transfers through Kakao Pay, the method of checking whether the counterparty has a fraud history in advance through The Cheat is being reviewed.
For the purpose of user protection, Kakao Pay has established an AI technology-based abnormal transaction detection system (FDS) since 2015 and has been preventing suspicious transactions by profiling usage information 24 hours a day, 365 days a year. In the recent COVID-19 situation, as various non-face-to-face activities or services increase and remittance and payment patterns also become more diverse, machine learning technology is also being applied to detect new types of abnormal transactions and respond in real time.
In recognition of these efforts, Kakao Pay became the first in the fintech industry to obtain integrated certification for the Information Security and Personal Information Management System (ISMS-P) from the Financial Security Institute. Through this investment in The Cheat, Kakao Pay’s financial consumer protection system is expected to be upgraded to the next level.
Kakao Pay said, “We have invested in The Cheat, which provides Korea’s largest financial fraud prevention service, so that Kakao Pay users can enjoy their financial lives with greater peace of mind.” He added, “We will continue to strengthen Kakao Pay’s technology and business capabilities to provide greater peace of mind to users.” “We will review various investments to provide better services to customers.”
Source: Pangyo Techno Valley Official Newsroom
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