Gang Arrested for Investment Fraud Using 'Unlisted Stock Surge' Bait... 580 Million Won in Damages

A gang that swindled hundreds of millions of won by giving a small amount of unlisted stocks and then deceiving victims that the stock value would soon skyrocket has been caught by the police.

The Cyber Crime Investigation Unit of the Gyeongnam Provincial Police Agency announced on the 14th that they arrested seven suspects on charges of fraud, detaining five including the 20-year-old ringleader Mr. A, while two others were booked without detention.

According to the investigation unit, the gang is accused of impersonating stock investment experts from October 2022 to September this year and swindling 15 victims out of approximately 580 million won.

Investigators are examining the office computer used by the investment fraud gang.
[Photo by Gyeongnam Police Agency, video capture provided]

They rented an office in a building in Changwon City in September last year to plan the crime, and approached victims through telemarketing by dividing roles.

They secured unlisted stocks in advance and then, pretending to be winners of an event, distributed a small amount of about five shares to an unspecified number of people.

They then deceived victims by saying, “The company’s public offering through listing on the stock exchange is confirmed soon, and the stock value will increase several times,” and “Related stocks can only be traded in quantities of 1,000 shares or more and even come with loss compensation,” thereby inducing stock purchases.

The police analyzed clues such as financial transaction details to identify the office where the crime took place and sequentially arrested seven suspects. They plan to expand the investigation, believing there may be higher-ups related to the gang.

A police official said, “Be especially cautious of frauds that induce investment with the bait of high returns or encourage bulk purchases by claiming to buy unlisted stocks at high prices,” and added, “If you actually suffer fraud damage, please report it immediately to the investigative authorities.”

He added, “We will continue to focus investigative efforts on cyber fraud cases that infringe on people’s livelihoods and respond strictly.”

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