Six Members of a Gang Arrested for Creating Fake Bank Accounts and Selling Them to Voice Phishing Criminals

9 Billion KRW Criminal Funds Laundered and 210 Million KRW Defrauded from Victims

Gyeongnam Provincial Police Agency. / Photo by Se-ryeong Lee ryeong@

[Asia Economy Yeongnam Reporting Headquarters Reporter Lee Seryeong] The Gyeongnam Provincial Police Agency has apprehended a group that laundered criminal funds using dummy bank accounts and embezzled approximately 210 million KRW.

According to the Anti-Corruption Economic Crime Investigation Division 2 of the provincial police on the 14th, the group established four fictitious corporations from October 13, 2021, to January of this year, then issued over 20 corporate bank accounts and digital certificates, which they provided to an unidentified criminal organization via cargo courier services.

The bank accounts and certificates were used for money laundering and voice phishing crimes, and the group sold the dummy accounts to criminal organizations, collecting 2.5 million KRW per account monthly as commission fees.

Police investigations also revealed that the group arbitrarily withdrew and used victim funds deposited into the dummy accounts.

From November last year, the Gyeongnam police identified corporate accounts where victim funds from voice phishing cases in the jurisdiction were collected, and conducted long-distance investigations tracking accounts across Seoul, Gyeonggi, and other regions nationwide.

Through these investigations, the police arrested six individuals including corporate representatives who recruited accounts, corporate executives, and minor participants, detaining three on charges of aiding fraud and violating Article 49 of the Electronic Financial Transactions Act, while the remaining three were booked without detention.

The arrested group is accused of establishing phantom corporations to open and distribute about 10 corporate dummy accounts used for voice phishing and cyber gambling, laundering criminal funds amounting to approximately 9 billion KRW.

They are also charged with providing these accounts to voice phishing criminal groups and embezzling about 210 million KRW from 16 victims.

The police are expanding the investigation to identify higher-level recruiters who receive dummy accounts and pay commissions.

According to the police, aiding fraud carries a penalty of up to 10 years imprisonment or a fine up to 20 million KRW, and violating Article 49 of the Electronic Financial Transactions Act carries up to 5 years imprisonment or a fine up to 30 million KRW.

A police official stated, “Even if one did not know the accounts would be used for crimes, recklessly transferring bank accounts to others constitutes a violation of the Electronic Financial Transactions Act.”

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