Surge in Unauthorized Fundraising Scams... Luring with High Returns on Virtual Assets

[Asia Economy Reporter Song Hwajeong] Fraudulent fundraising schemes disguised as high-yield virtual asset investments or platform businesses are rapidly increasing, deceiving consumers.

According to the Financial Supervisory Service (FSS) on the 27th, reports and tips related to fraudulent fundraising received by the FSS's 'Illegal Private Financing Reporting Center' last year totaled 307 cases, more than double the previous year's 152 cases. Among these, investigations were requested for 61 specific cases (71 companies) suspected of fraudulent fundraising, a level similar to the previous year (58 cases, 82 companies).

Among the investigation requests last year, allegations related to socially high-interest areas such as virtual assets and platform businesses increased significantly compared to the previous year. These included various cases such as sales of self-developed virtual assets, investment in exchange businesses, delegated virtual asset investments, and virtual asset mining sales scams. Conversely, traditional methods involving financial products or general business sectors like manufacturing saw a decrease in fraudulent fundraising activities.

Fraudulent fundraising refers to the act of raising funds from unspecified many people under the pretext of investment, deposits, or savings without authorization, licensing, or registration, while promising payments exceeding the principal. An FSS official stated, "Fraudulent fundraising schemes that exploit the psychology of wanting to avoid risk while seeking high returns by promising principal guarantees continue to thrive," adding, "These fraudulent fundraisers often abscond after embezzling the invested funds, so financial consumers need to familiarize themselves with the main behaviors, precautions, and response methods related to fraudulent fundraising scams to prevent damage in advance."

The FSS urged that to prevent fraudulent fundraising damage, if funds are solicited with promises of principal and high returns, one should first suspect fraudulent fundraising. It also advised exercising greater caution when high recruitment commissions are offered and to always verify whether the entity is a regulated financial institution before investing.

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