The Bank Transfer Fraud Relief Act (formally: Act on Damage Recovery Benefit Payments from Funds in Deposit Accounts Used for Crimes) is a 2008 law that enables freezing bank accounts used in transfer fraud and distributing remaining funds to victims.
The process works as follows: when a victim files a police report, police request the financial institution to freeze the account. The bank halts transactions and the Deposit Insurance Corporation publishes a notice giving the account holder 60 days to claim rights. If no claim is filed, the deposits are extinguished and distributed to victims as recovery payments.
Critically, only funds remaining in the account at the time of freezing can be returned. Money already withdrawn by criminals is unrecoverable. When damages exceed the account balance, funds are distributed proportionally among victims. This makes early reporting to police and banks essential. Within 30 minutes of transfer, a bank "recall" procedure may recover the full amount.
Victims apply for recovery payments through the financial institution, requiring the police report number, transfer details, and identification documents. The application period is 30 days from the Deposit Insurance Corporation's public notice. See fraud prevention guide and fraud reporting guide for step-by-step response procedures.