Impersonation Phone Financial Fraud Increasing Again... Police Urge Caution

[Asia Economy Reporter Seongpil Cho] The National Police Agency's National Investigation Headquarters warned that institution-impersonation phone financial fraud, which impersonates organizations such as the prosecution and the Financial Supervisory Service, has increased significantly this year compared to previous years, urging caution.

According to the National Investigation Headquarters on the 23rd, the number of phone financial fraud cases from January to July this year was 14,197, which is about a 30% decrease compared to 20,402 cases during the same period last year. The amount of damage also decreased by about 28%, from 500.6 billion KRW last year to 361.3 billion KRW this year. Looking at the proportion of types of phone financial fraud cases this year, loan fraud accounted for 63%, and institution impersonation accounted for 37%. Last year, loan fraud was 79%, and institution impersonation was 21%. The National Investigation Headquarters stated, "Until recently, phone financial fraud mostly consisted of loan fraud targeting financially struggling citizens by approaching them with promises of loans, but the proportion of institution impersonation has increased," adding, "Considering that last year's damage ratio was about 8:2, the rapid increase in institution impersonation is concerning."

The National Investigation Headquarters analyzed that the reason for the increase in institution impersonation fraud is that criminal organizations exploit the fact that ordinary people have little experience with investigations by law enforcement agencies, use so-called 'forced reception and forced transmission' (Gangsu-sangbal) to make victims believe the perpetrators are prosecutors or investigators, and take all of the victim's assets and even large debts.

The National Investigation Headquarters explained that victims of institution impersonation phone financial fraud are mostly in their 20s or younger and 30s, but there are also a considerable number from their 40s to over 70s. They added that large-scale damages are especially found among those aged 40 and above with substantial assets. The National Investigation Headquarters said, "In cases of large-scale damage, there were also doctors, researchers, and insurance company employees," noting, "This shows that even people with relevant professions and high educational backgrounds can be deceived."

A National Police Agency official emphasized, "Law enforcement agencies never send warrants or official documents via social networking services or text messages," and added, "If they demand cash, virtual assets, or cultural gift certificates under the pretext of asset inspection, it is 100% fraud, so you should hang up the phone."

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