Government Launches Crackdown on Voice Phishing Crimes... Joint Task Force Established and Reporting System Unified (Comprehensive)

Establishment of Joint Government Task Force on Voice Phishing at Seoul Eastern District Prosecutors' Office
Within This Year, Launch of 'Voice Phishing Integrated Reporting and Response Center'... Unified Phone and Internet Reporting Channels
Fast Track System from Reporting and Consultation to Investigation and Prosecution Set Up

[Asia Economy reporters Choi Seok-jin, legal affairs specialist, and Heo Kyung-jun] The government has prepared drastic measures to prevent the increasing damage caused by voice phishing crimes every year.

Until now, the phone and internet reporting channels, which were dispersed across different ministries, will be unified into an integrated reporting and response center centered on the National Police Agency, and a government joint investigation team for voice phishing crimes, involving the prosecution, police, and related agencies, will be established within the prosecution.

On the 21st, the Office for Government Policy Coordination held an inter-ministerial meeting on cybercrime response, including voice phishing, at the Government Seoul Office with officials from related agencies such as the Ministry of Science and ICT, Ministry of Justice, Korea Communications Commission, Financial Services Commission, Supreme Prosecutors' Office, National Police Agency, Financial Supervisory Service, National Intelligence Service, and Korea Internet & Security Agency (KISA), and announced these decisions on the 23rd.

Voice phishing crimes have continued to increase in damage over the past 16 years despite various measures and continuous crackdowns by government and private institutions since the first reported case in Korea in 2006.

According to statistics from the National Police Agency, the annual damage amount in 2021 was 774.4 billion KRW, an approximately 11% increase from the previous year (700 billion KRW), while the number of arrests related to voice phishing suspects was 26,397, a 33.5% decrease compared to 39,713 the previous year.

Examining the crime types, corporate-style voice phishing organizations involving organized crime groups have been uncovered, and the methods of crime have become increasingly specialized and sophisticated, such as document forgery and distribution of malicious programs. This situation calls for strengthening national investigative capabilities against voice phishing and implementing drastic government-wide countermeasures.

First, the government plans to establish a government-wide joint 'Voice Phishing Integrated Reporting and Response Center' within this year.

The center will be centered on the National Police Agency, with personnel dispatched from the Korea Communications Commission, Ministry of Science and ICT, Financial Supervisory Service, and KISA. The currently dispersed phone reporting channels at the police, KISA, and Financial Supervisory Service will be unified into the emergency number 112, and the internet sites operated by each ministry will also be consolidated into a single site, completely streamlining the process from reporting to handling.

Furthermore, by accumulating and analyzing reporting data, the center plans to build an integrated analysis and response system that can be immediately used as administrative action data for investigations, refunding crime damages, suspending phone numbers used in crimes, freezing accounts, and remedying identity theft of victims.

Additionally, the government will establish and operate a 'Voice Phishing Government Joint Investigation Team' composed of related government agencies such as the Supreme Prosecutors' Office, National Police Agency, Korea Customs Service, National Tax Service, Financial Supervisory Service, and Korea Communications Commission.

The joint investigation team will be established at the Seoul Eastern District Prosecutors' Office, and all related agencies including the prosecution, police, Financial Supervisory Service, and Korea Communications Commission will cooperate to mobilize nationwide capabilities for large-scale joint crackdowns.

The joint investigation team will be composed of 5 to 6 prosecutor offices led by a senior prosecutor-level chief, and plans to operate police investigation teams and financial investigation cooperation teams. The Supreme Prosecutors' Office stated that detailed organization and operational plans will be discussed with related agencies through working-level consultations.

Currently, under the adjustment of investigative authority, the prosecution can only investigate voice phishing crimes involving damage amounts of 500 million KRW or more or cases directly related to police referrals.

Therefore, for cases such as the main voice phishing masterminds and senior organization members related to cash collectors referred by the police, as well as organizations distributing fake bank accounts and phones, and groups involved in overseas transfer of crime proceeds, if direct relevance to referred cases is not recognized, direct investigation by the prosecution is impossible. Hence, joint investigations with the police, which have no restrictions on investigation scope, are essential.

The prosecution will perform roles such as joint or direct investigations with police investigation teams during the investigation stage, rapid processing of search warrants, prosecution and maintenance of indictments for referred cases, and requests for international cooperation investigations. The police will cooperate with the prosecution to investigate and refer voice phishing organizations and fake bank account and phone distribution organizations, recover criminal proceeds, and forcibly repatriate overseas voice phishing suspects.

The Financial Supervisory Service and Korea Communications Commission will handle necessary measures such as suspending accounts and communication devices used in crimes, victim recovery, and reviewing administrative sanctions against telecommunications companies. The Korea Customs Service and National Tax Service will be responsible for tracking funds, investigating suspects involved in overseas transfer of damages, tax evasion investigations, and supporting recovery of criminal proceeds.

The prosecution plans to thoroughly investigate from the lowest-level cash collectors and fake account providers to the highest-level organization masterminds, actively applying charges not only for fraud but also for organizing and operating criminal groups, aiming for heavy sentences. In addition, they will ensure thorough investigations into overseas transfer of damages and tax evasion, as well as recovery of criminal proceeds, while simultaneously implementing related measures such as victim recovery, administrative sanctions against telecommunications companies, and dissolution of shell companies.

On the day, Lee Won-seok, acting Prosecutor General, said to reporters on his way to work, "Last year alone, the damage caused by voice phishing crimes exceeded 770 billion KRW, and this has been a long-standing issue for 16 years," adding, "The prosecution will join forces with related agencies such as the police, Financial Supervisory Service, National Tax Service, and Korea Customs Service, and will make every effort to eradicate voice phishing crimes by mobilizing international criminal justice cooperation and overseas networks."

He continued, "On this occasion, we will strictly respond by mobilizing all available resources to root out everything from the lowest-level cash collectors to account name lenders, account managers, and the highest-level masterminds hiding domestically and abroad," emphasizing, "The ultimate goal is to create a system where the public can conduct financial transactions with peace of mind."

Regarding concerns that the formation of the investigation team together with the police aims to expand the prosecution's direct investigation scope, which was reduced by the 'Prosecution Investigation Authority Reform Act,' Lee responded, "Rather than expanding the investigation scope, the intention is for each agency to combine their strengths in areas where they perform well, under the name of the government joint investigation team," adding, "It is said that ten people cannot stop one thief, but the prosecution and police will join forces to protect the basic rights and property of the people."

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