"I'm Investigator OO..." Voice Phishing Worsens... Victims' Tears Remain

Voice Phishing: 9,000 Cases and 222.8 Billion KRW Damage in Seoul Last Year
Recently, Voice Phishing Using 'Government Support Funds' Emerges
No Compensation System for 'Face-to-Face Extortion' Fraud Cases

[Asia Economy Reporter Kim Choyoung] #1. In October last year, voice phishing syndicate member Mr. A impersonated the Financial Supervisory Service, approaching victims by saying, "We will provide low-interest refinancing loans through government subsidies. To receive the loan, you must repay existing loans in cash," extorting a total of 209.62 million KRW over 20 transactions and delivering it to the organization.

#2. Last month, voice phishing syndicate member Mr. B impersonated a government agency, claiming, "You have been selected as a recipient of government subsidies," then had the victim download a malicious application and enter their resident registration number, workplace name, address, and account number. After checking the victim's loan status, Mr. B instructed them to repay the loan to receive a cheaper loan and provided a virtual account for deposit.

Recently, voice phishing crimes impersonating government agencies such as the Financial Supervisory Service have been spreading, deceiving victims by promising low-interest refinancing loans through government subsidies or claiming selection as government subsidy recipients, then hacking mobile phones to steal personal information and induce remittances. Small business owners and self-employed individuals struggling due to the prolonged COVID-19 pandemic are the main victims.

Voice phishing crimes continue to evolve in sophistication and intelligence, and the scale of damage to ordinary citizens is not decreasing. According to the National Police Agency, the damage amounts were △146.8 billion KRW in 2016 △247 billion KRW in 2017 △404 billion KRW in 2018 △125.7 billion KRW in 2019 △760 million KRW in 2020, showing a steady increase.

The number of arrests related to voice phishing also reached 7,500 over the past five years: △1,137 in 2016 △1,221 in 2017 △1,452 in 2018 △1,513 in 2019 △2,177 in 2020.

[Image source=Yonhap News]

In particular, depending on the crime type, it is difficult to trace accounts, making it relatively hard to arrest perpetrators or recover damages, which has become problematic. In the case of 'account transfer-type fraud,' victims can apply for various damage relief measures such as payment suspension at financial institutions, whereas 'face-to-face extortion-type fraud' lacks damage relief systems. This is because 'face-to-face extortion-type fraud' is not covered under the "Special Act on the Prevention of Telecommunications Financial Fraud and Refund of Damages."

This law limits 'electronic financial crimes' to account transfers and remittances. In cases where victims directly hand over money or bankbooks to voice phishing syndicate members, i.e., face-to-face extortion-type fraud, applying the special law is difficult.

Moreover, unlike the past when 'account transfer-type fraud' using mule accounts (fraudulent financial accounts) was predominant, recent restrictions on transfer limits and stricter procedures for opening new accounts have led to a sharp increase in 'face-to-face extortion-type fraud,' where cash collectors meet victims in person to receive cash. This makes it even more urgent to devise measures to address these institutional loopholes.

Park Ho-jeon, Head of Investigation Division 2 at Jeonbuk Police Agency, posted the article titled "Please Stop Voice Phishing Systematically" on the Blue House National Petition Board. Photo by Blue House National Petition Board screenshot

Accordingly, voices have emerged within the police investigating voice phishing crimes, calling for the government to improve systems to prevent voice phishing damage.

On the 11th, Park Hojun, head of Investigation Division 2 at Jeonbuk Police Agency, posted a message titled "Please stop voice phishing institutionally" on the Blue House National Petition Board.

In the post, Investigator Park introduced himself as "a police officer working on voice phishing-related tasks" and opened by saying, "Voice phishing is occurring frequently, and there are many unfortunate cases."

He explained, "Various methods are being used, such as demanding account transfers or cash withdrawals to hand over to cash collectors, under pretexts like low-interest refinancing loan requests and impersonating government agencies to verify crime-related matters. Damage amounting to billions of won occurs nationwide annually."

He emphasized, "The government must no longer neglect voice phishing, which can make the entire population victims of crime. The government should institutionally improve and take the lead in preventing voice phishing crimes."

He also argued that, similar to COVID-19 disaster text messages, daily voice phishing prevention messages should be sent to the entire population, and a system should be established where, through the Financial Supervisory Service, cases of large cash withdrawals are reported to 112 for police verification.

Additionally, he criticized, "Nowadays, it is rare to withdraw tens of millions of won in cash from banks. Banks that simply allow such large cash withdrawals, deceived by voice phishing criminals, should also bear responsibility."

Voice phishing crimes require the efforts and cooperation of financial institutions. However, victims of 'face-to-face extortion-type fraud' have not reported their damages to financial institutions due to the absence of damage relief systems, leading to a lowered awareness of such crimes among financial institutions.

[Image source=Yonhap News]

Therefore, some argue that financial institutions, being on the front lines of preventing voice phishing crimes, should be more vigilant.

In 'face-to-face extortion-type' fraud, most victims withdraw the damaged amount at the counter due to ATM withdrawal limits, providing staff with opportunities to face victims. If suspicious signs are detected, staff should actively understand the customer's situation and respond promptly to prevent the crime from progressing to the next stage, making voice phishing crimes preventable.

Calls are also rising in the National Assembly for measures to eradicate voice phishing crimes. Representative Kang Ki-yoon of the People Power Party stated, "Voice and messenger phishing have long been serious crimes, but the scale of damage remains vast, and cases of suicide have occurred consecutively," urging greater vigilance against voice and messenger phishing.

He added, "Currently, voice and messenger phishing crimes threaten the property and lives of our citizens. Related agencies such as the National Intelligence Service, Ministry of Science and ICT, Financial Supervisory Service, and National Police Agency must unite and actively devise fundamental countermeasures."

Meanwhile, as voice phishing damages in Seoul alone exceeded 200 billion KRW last year, the government has taken more proactive institutional improvement measures to prevent voice phishing crimes and assist in damage recovery.

According to the '2021 Major Tasks Plan of the Ministry of Justice,' the Ministry will also work on the swift recovery of damages for victims of mass fraud targeting ordinary citizens. A representative measure is the full-scale implementation of the crime victim property restitution system, enabling victims of organized fraud crimes such as voice phishing and pyramid schemes to recover damages quickly. Additionally, the Ministry plans to establish a crime victim property restitution system and provide training for dedicated staff to promptly block property concealment and escape.

A Ministry of Justice official stated, "We will pursue legislative policies aligned with creating a fair social order that considers the vulnerable and pursues equal opportunities, supporting livelihoods accordingly."

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