"Urgent Disaster Relief Loan First-Come, First-Served Payment" Financial Scam Voice Phishing on the Rise

Sending Damage Prevention Text Messages to All Subscribers of the Three Mobile Carriers

[Asia Economy Reporter Jo Gang-wook] "Dear customer, to receive a government-supported loan, existing loans must be repaid first. Please transfer the amount to the account below."

"Loans are only available through non-face-to-face methods. Please download and install the app below for identity verification."

Recently, cases of voice phishing and smishing disguised as government-supported loans related to the novel coronavirus disease (COVID-19) have increased, prompting a consumer alert.

According to the Financial Supervisory Service (FSS) on the 30th, the FSS, together with the Korea Communications Commission and the National Police Agency, sent damage prevention text messages to all subscribers of the three major mobile carriers.

Looking at the types of recently reported voice phishing and smishing, many cases involved impersonating legitimate institutions by using names of regulated banks such as ‘KB Gukmin Support’, ‘Woori Financial Support’, or public institutions like ‘Seomin Financial Support Center’ and ‘National Happiness Fund’, under the guise of ‘Government Emergency Disaster Relief Loan Guidance’, leading users to mistakenly believe the messages were sent by credible organizations.

An FSS official stated, "Especially, there are cases exploiting the anxious psychology of small business owners and micro-entrepreneurs urgently needing funds due to COVID-19 by using provocative expressions such as ‘first-come, first-served payment’ and ‘limit exhaustion imminent’, so special attention and caution are required."

If you call the consultation number listed in the message, there have been various damage cases such as requests for account transfers under the pretext that existing loans must be repaid first to receive government-supported loans or that credit rating upgrades are necessary, or inducing installation of remote control apps by falsely claiming that loans are only available non-face-to-face due to COVID-19, then stealing financial information such as digital certificates and OTPs (one-time passwords) to embezzle funds.

Accordingly, the Korea Communications Commission, in cooperation with the Korea Association for ICT Promotion (KAIT) and mobile carriers, plans to send text messages warning about ‘voice phishing and smishing disguised as COVID-19 government-supported loans’ to subscribers of the three major mobile carriers, and provide damage prevention information via billing statements (mail/email) to users of budget carriers.

The FSS clarified that public institutions do not advertise financial product loans via phone calls or text messages, and if someone introduces themselves as a loan officer from a commercial bank and asks you to install an app on your mobile phone and enter personal information, it is 100% an illegal loan scam. They urged people to familiarize themselves with and follow the “Voice Phishing and Smishing Damage Prevention Guidelines” below.

The National Police Agency stated that if telecommunications financial fraud crimes disguised as government-supported loans are detected, they will be strictly punished, and they plan to continue responding firmly to illegal loan scams that cause public anxiety and social confusion.

This content was produced with the assistance of AI translation services.