Shinhan Financial Group launches campaign to prevent small business no-show fraud

Shinhan Financial Group has launched a joint campaign with the Financial Services Commission, the Financial Supervisory Service, and the Korean National Police Agency to prevent ‘no-show fraud’ targeting small business owners. This type of fraud involves perpetrators impersonating public institutions or corporations to place large orders, subsequently demanding proxy purchases or advance payments before disappearing.

To mitigate these risks, Shinhan EZ Insurance has introduced a ‘No-Show Fraud Damage Support Compensation Insurance.’ Shinhan Bank will provide this insurance free of charge to approximately 150,000 merchants using the public delivery platform ‘Ddaenggyeo.’ Upon agreement to join, merchants are covered for one year from their registration date. If fraud is confirmed through police investigation, merchants can receive compensation of up to 3 million KRW.

The month-long campaign will utilize various online and offline channels across Shinhan Group’s affiliates—including banking, cards, and securities—to educate merchants on identifying suspicious transactions and following proper response procedures. The initiative also aims to improve transaction culture by warning individual and corporate users against fraudulent practices such as requesting proxy purchases.