Messenger Phishing Increased by 700%... Over 1 Million Illegal Financial Ads Detected

1.02 Million Illegal Financial Ads Collected by FSC
Illegal Ads via Text Messages Surge 718.4%
"Loan Offers via Text? Illegal, So You Should Hang Up"

[Asia Economy Reporter Song Seung-seop] Last year, illegal financial advertisements detected and collected by the Financial Supervisory Service (FSS) increased by nearly 30%, surpassing 1 million cases. This surge was driven by messenger phishing that impersonates government agencies, public institutions, and banks to induce loan consultations, which increased by more than 700%. Financial authorities urged special caution as most cases using phone calls, text messages, or faxes are likely to involve illegal lending companies.

According to the FSS on the 12th, the number of illegal financial advertisements detected and collected through reports and monitoring systems last year totaled 1,025,965 cases. This represents an increase of 231,221 cases (29.1%) from 794,744 cases the previous year. The FSS collects and monitors illegal financial advertisements through citizen monitoring groups, general reports, monitoring systems, and the Korea Internet & Security Agency (KISA). Among these, spam reports of illegal loan advertisements received via KISA accounted for the majority, with 563,748 cases.

When illegal financial advertisements are confirmed, the FSS requests related agencies to suspend the use of phone numbers or delete internet posts according to the Loan Business Act and other regulations. Last year, the FSS requested the Ministry of Science and ICT to suspend the use of 19,877 phone numbers. The number of phone number suspensions also increased by 8,572 cases (75.8%) from 11,305 cases the previous year.

By media type, text messages were the most frequent with 11,941 cases, a sharp increase of 718.4% compared to 1,459 cases the previous year. Due to the COVID-19 pandemic restricting face-to-face activities, the main advertising channels shifted from offline to online. Flyers followed with 7,247 cases, then faxes with 477 cases, and internet/SNS with 212 cases.

The number of blocked posts reached 16,092 cases. The FSS requests the Korea Communications Standards Commission to close or delete internet posts or sites related to illegal loan advertisements. With the refinement of the monitoring system, identification of illegal financial advertisements and operational efficiency improved, increasing the number of actions from 10,641 to 16,092 cases, a 51.2% rise.

"Most loan advertisements via text, phone, and fax are illegal loans"

The FSS explained that text message advertisements impersonating credible institutions to induce loan consultations are rampant. These ads disguise themselves as introducing official loan products linked to government public support funds or financial companies, using phrases like ‘Emergency Support for Low-Income’ or ‘Work/Income-Linked Loan Approval’ to lure economically vulnerable groups.

Most of these advertisements guide recipients toward illegal high-interest loans from unregistered lenders. They are especially found in publicly accessible internet spaces, exploiting the fact that only registered members can view posts to evade reporting and deletion measures.

Accordingly, the FSS warned that cases of illegal loans and illegal debt collection by unregistered lenders, resulting in additional damages, are frequent. Illegal advertisements for the sale of personal credit information and bank accounts are also on the rise. Personal information and so-called "ghost accounts" that fall into the hands of illegal financial operators through these processes are exploited for voice phishing and illegal private financing, causing damages such as random text message dispatches and fund embezzlement.

The FSS advised, “When encountering illegal loan advertisements, it is best not to respond.” They recommended directly calling the official number of the financial company or visiting the branch in person to verify. They also urged special caution, stating, “If the company name or loan business registration number is not provided or is falsely stated, it is highly likely to be an illegal loan advertisement, so do not be deceived.”

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