Seoul City Analyzes Internet Shopping Mall Fraud... This Year's Damage Amount Reaches 3.4 Billion Won, Record High

Analysis of Internet Shopping Mall Frauds Since 2005
77 Fraudulent Shopping Malls Detected This Year Alone
Expansion of Peer-to-Peer Transactions... Changing Approaches

The amount of internet shopping mall fraud reported in Seoul this year reached a record high of 3.365 billion KRW. It was found that fraud methods have also changed, with an increase in shopping mall side-job scams following the COVID-19 pandemic.

On the 24th, the Seoul Metropolitan Government disclosed the damage status of 738 fraudulent internet shopping malls detected by the Seoul Electronic Commerce Center from 2005 to this year.

The most notable point is the record-high damage amount this year. As of December 9, 77 fraudulent shopping malls were detected, with damages reaching a record high of 3.365 billion KRW.

Looking at the timing of fraud occurrences, from 2005 to 2019, most happened in January and September before holidays. From 2020, after the pandemic, there has been a tendency for fraud to shift to the summer months of June and July. Seoul interprets this as a result of increased outdoor activities such as golf and camping, replacing indoor activities.

By product and sector share of fraud damage, electronics accounted for 46.2% (341 cases). This was followed by clothing, shoes, and accessories at 27.9% (206 cases), shopping mall side-jobs at 6.4% (47 cases), and gift certificates along with sports, leisure, and hobby goods each at 4.7% (35 cases).

Since last year, there has also been a noticeable increase in shopping mall side-job scams and frauds enticing sales between individuals. Due to factors such as high inflation and high interest rates reducing real income, more people are trying to earn even small amounts of money, leading to an increase in related damages.

The approach methods to scam sites have also changed. Before the pandemic, access was mostly through portals, price comparison sites, and spam emails, but afterward, it shifted to open markets, peer-to-peer trading platforms, text messages, and SNS. Seoul explains that a characteristic of scam sites after the pandemic is impersonating famous online malls and using foreign servers. A representative from the Seoul Electronic Commerce Center advised, "For damage prevention, credit card payments are safe, and cash payments should be avoided if possible. If cash payment is unavoidable, use companies that provide services like 'escrow' or 'consumer damage compensation insurance.'"

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