[Exclusive] 9,568 New Fraud Cases This Year... Less Than Half Solved

Arrest Rate Only 43.9% from January to August
New Fraud Methods Constantly Evolving
Police Vow to Eradicate Large-Scale Fraud, but Efforts Fall Short

This year, the arrest rate for new types of fraud crimes has been found to be less than half. Although the police have pledged to eradicate large-scale fraud affecting multiple victims, criticism is mounting that their response is failing to keep up with the rapid spread of damages.

According to data submitted by the office of Assemblyman Yoon Kunyoung of the Democratic Party of Korea to the National Police Agency on September 12, the arrest rate for new types of fraud-including investment-leading room scams, romance scams, and no-show scams-stood at only 43.9% from January to August this year. Most new types of fraud are conducted remotely and online, with techniques becoming increasingly sophisticated. For example, investment-leading room scams lure victims by promising guaranteed principal and high returns, then swindle investment funds. Romance scams typically begin with contact through social networking services (SNS), where scammers build emotional intimacy before demanding money under the pretense of marriage or business expenses. No-show scams involve impersonating public institutions, military units, political parties, or entertainment agencies to place large orders or group reservations, then coercing the victimized companies into purchasing unfamiliar goods on their behalf.

The number of cases and total damages are rising sharply. By crime type, investment-leading room scams occurred 1,452 times with damages of 126.6 billion won from September to December 2023, 8,104 cases with 710.4 billion won in damages last year, and 4,524 cases with 404.4 billion won in damages up to August this year. Romance scams increased from 1,265 cases and 67.5 billion won in damages last year to 1,357 cases and 84.7 billion won in damages as of August this year. No-show scams have already occurred 3,687 times this year alone, with damages totaling 51.7 billion won. Investment-leading room scam statistics have been compiled since September 2023, romance scams since February last year, and no-show scams since January this year.

In July, the National Police Agency launched the 'Task Force for Large-Scale Fraud Against Multiple Victims.' The task force discussed measures such as establishing dedicated investigation teams for large-scale fraud, expanding the integrated reporting and response center, strengthening international cooperation and joint action, and promoting the enactment of the Large-Scale Fraud Prevention Act (tentative name). At the time, Park Sungjoo, Commissioner General of the National Investigation Headquarters, declared, "With a firm resolve to eradicate large-scale fraud, we will mobilize all police resources for strong crackdowns, proactive disruption of criminal methods, substantial recovery of damages, and institutional improvements, so that the public can feel the results of our response." However, there is still a shortage of personnel on the ground. Investigations into new types of fraud are currently handled by a total of 2,872 officers, including 899 in the Anti-Corruption and Economic Crime Investigation Unit, 638 in the Cyber Investigation Unit, and 1,335 in the Criminal Mobile Unit at provincial police agencies. Given the nationwide number of cases and scale of damages, this is widely considered insufficient.

Experts are emphasizing the need to strengthen investigative capacity. Oh Yoonseong, a professor of Police Administration at Soonchunhyang University, stated, "New types of fraud crimes often use overseas servers, making arrests even more difficult. Since the number of cases is expected to increase further, it is necessary to supplement both manpower and budget." Kim Dowoo, a professor of Police Administration at Kyungnam University, pointed out, "These crimes are transnational in nature, but international cooperation is weak. A dedicated organization at the pan-government level is needed, and the system should be developed to enhance investigative expertise."