Phone Financial Fraud Losses in September Total 31.6 Billion KRW... Lowest in 4 Years and 3 Months

Preventive Investigation Effect Focused on 8 Major Crime Methods
New Techniques Keep Emerging... Constant Vigilance Needed

[Asia Economy Reporter Seongpil Jo] The National Police Agency's National Investigation Headquarters announced on the 18th that the amount of damage caused by phone financial fraud last month was 31.6 billion KRW. This is the lowest figure in 4 years and 3 months since June 2018, when the damage amount was 28.6 billion KRW. The police analyzed this as the effect of the 'preventive investigation' promoted since last year.

According to the police, preventive investigation is an investigative activity that blocks eight types of criminal tools used in phone financial fraud, such as number-manipulating relay devices and burner phones. The police stated that after establishing the 'Telecommunication Financial Fraud Investigation Situation Room' within the National Police Agency in February last year, they collected and analyzed all cases nationwide and established a response system for each stage of the crime. Among these, they selected eight essential criminal tools for focused crackdowns, and early blocking of the crime attempts itself led to a reduction in damage, according to the police.

A case where a relay device was hidden inside a doghouse. The relay device was installed in a place that is not usually checked, and connected to a battery for power supply. / Provided by the National Police Agency

Full Effort to Remove Core Criminal Tool 'Number-Manipulating Relay Devices'

The police analyzed that among the crackdown on the eight criminal tools, the removal of number-manipulating relay devices particularly led to the reduction of damage. A number-manipulating relay device refers to a device that manipulates a 070 internet phone number into a 010 mobile phone number, etc. Its use itself is illegal under the Telecommunications Business Act. The police explained that criminal organizations exploit the fact that victims tend to avoid international calls or 070 numbers but tend to answer calls from 010 numbers, thus using relay devices.

Relay devices are also used as a core tool in 'text message financial fraud.' First, text messages sent from overseas are routed through mobile phones acting as relay devices and disguised as 010 text messages. Then, they indiscriminately send text messages to unspecified many people, demanding ID cards or credit card photos from those who reply and inducing them to install remote control apps. A police official said, "The criminals use the obtained personal and credit information to purchase Google gift cards or vouchers or directly transfer money through remote control apps," adding, "The most representative case is a text message saying 'Mom, my phone screen is broken.'"

The police judged that relay devices play an important role in phishing crimes and started a full-scale crackdown on relay devices since last year. This year, they are removing relay devices installed nationwide, centered on a dedicated crackdown team. In a special crackdown conducted from April to June this year, a total of 9,679 relay devices were detected. A police official said, "During the crackdown, many housewives were caught while working part-time, deceived by the claim that they only needed to manage the machines." The police have been conducting a second special crackdown from August to this month. A total of 172 personnel from 15 metropolitan and provincial police agencies are involved in the crackdown.

A person carrying a relay device boarding the subway. This is a method of boarding the subway while continuously moving with the relay device to avoid being tracked. /Photo by the National Police Agency

Evolving Concealment Methods... "Like Finding a Needle in a Haystack"

The police explained that criminal organizations are evolving their crime methods in various forms to avoid crackdowns. For example, until last year, the main form was installing Sim-boxes in one-room apartments or motels, but as crackdowns intensified, they began operating multiple mobile phones as relay devices. A police official added, "Recently, new forms such as relay devices in USB port format, connected to solar panels, wireless routers, or portable large batteries, have been continuously discovered." Considering that crimes are evolving by exploiting loopholes in communication technology in various ways, the police believe that communication technology experts are included in the supply and distribution organizations of relay devices.

The places and methods of concealing relay devices are also evolving. They are installed by connecting solar panels on mountain slopes or rooftops of abandoned buildings or buried underground under high-voltage lines by connecting batteries. They are also hidden in construction site power distribution boxes, inside ventilation ducts of apartments under construction, apartment fire hydrants, or bushes next to road crash barriers. A police official explained, "Recently, so-called 'human relay devices' have appeared, who carry relay devices and batteries in vehicles or motorcycles or carry multiple mobile phones in bags and ride the subway." Human relay devices are hired in a part-time job format and are known to receive about 4 million KRW per month on average.

The police admitted that as the concealment methods of relay devices evolve day by day, there are considerable difficulties in removal. A police official said, "To use an analogy, it is like finding a needle in a haystack." Nevertheless, the police emphasized that they thoroughly search and track to remove relay devices. They also added that at the same time as removing relay devices, they notify the call recipients of the risk of phone financial fraud damage. A police official said, "We block all criminal tools used in the crime, such as the relevant phone numbers, devices, and KakaoTalk IDs, from being used again in crimes."

Fake product payment bait messages and forged Financial Services Commission official documents / Photo by National Police Agency

"Yanbian Dialect Is a Thing of the Past"... Five Requests for Damage Prevention

The police also introduced key points that must be known to prevent phone financial fraud damage. They are as follows.

1. Randomly sent text messages about 'loans or government subsidies' are 99% bait messages, so never click or call.

2. Regardless of whether it is a prosecutor, investigative officer, Financial Supervisory Service, or bank employee, if they send a link via KakaoTalk under any pretext such as 'loan application' or 'security program,' it is a 'malicious app,' so never click it.

3. A mobile phone with a malicious app installed transfers full management authority, so-called 'gangsugangbal,' meaning all calls made from the infected phone connect to criminals. If you suspect a malicious app is installed, you should verify by calling from another person's mobile or a landline phone.

4. Financial institutions or investigative agencies never send warrants or official documents via social media or text messages. Especially, all procedures to disadvantage specific individuals, including investigations, are conducted in writing, so if you receive a call, say 'Please proceed with the procedure in writing' and hang up.

5. Neither government agencies nor financial institutions ask for cash, virtual assets, or cultural gift certificates. If they ask for cash, virtual assets, or cultural gift certificates under any pretext, it is 100% fraud, so hang up immediately.

A police official said, "Most people think they know about phone financial fraud, but now it is completely different from 10 years ago," adding, "There is no use of dialects at all, and cutting-edge communication technologies such as number manipulation and malicious apps are used, so if you don't know, you will inevitably fall victim."

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