"Posing as Prosecutors and Securities Employees in Suits"... 10 Phishing Collectors Arrested and Referred for Prosecution

Charged with Violating the Act on the Recovery of Damages for Telecommunication Fraud

Crimes Committed by a Layered Criminal Network

Cash and Gold Bars Taken from Elderly Scam Victims

Laundered Through Gift Certificates or Virtual Assets and Remitted Overseas

A group that collected and laundered funds for a leading-room (investment tip chatroom) scam and voice phishing organization based overseas, under the direction of that organization, has been handed over to prosecutors in South Korea.

The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit announced on the 20th that it had detained and referred for prosecution a total of 10 individuals: seven people, including a 62-year-old identified as A, who operated as domestic collectors for the overseas leading-room scam group, and three people, including a 54-year-old identified as B, who acted as collectors for an overseas phishing operation. The suspects did not know each other and followed separate instructions from the overseas organizations. The ages of the accused ranged from their 30s to their 70s.

Forged employee ID card (left) and false investment certificate used in crimes by Mr. A and others, who acted as domestic collectors for an overseas leading-room fraud organization. Seoul Metropolitan Police Agency

According to the police, A and others are accused of impersonating securities company employees by wearing suits and presenting forged identification to scam victims of the leading-room fraud, intercepting the illicit funds and receiving financial compensation from the overseas organization. B and his group are accused of showing fake Supreme Prosecutors' Office employee IDs to phishing victims—who had been deceived into believing their bank accounts were being used for crimes—in order to receive gold bars and collect their share of the proceeds. The suspects laundered the stolen funds by converting them into gift certificates or virtual assets such as 'Tether Coin (USDT)' before remitting them to the overseas organizations through higher-level collectors.

The leading-room scam group lured investors by misusing the YouTube broadcasts of well-known stock market experts and inviting them to online community-style investment chatrooms. They then deceived victims with false promises such as "We guarantee a 500% return through blue-chip investments" and "Because this is a secret project, wire transfers will be monitored by financial authorities," thereby inducing victims to hand over cash in person. A and his group reassured victims by showing them fake investment certificates and forged investment account screens near their residences, ultimately defrauding five victims out of a total of 385.2 million won.

The phishing group impersonated prosecutors, telling victims that "your bank account is involved in a crime, and an arrest warrant has been issued" and "we will protect your remaining assets," thereby tricking them into purchasing gold bars. Victims obtained gold bars by withdrawing from savings and installment accounts as well as taking out new loans. B and his group received these gold bars by presenting forged Supreme Prosecutors' Office employee identification.

Based on intelligence, the police conducted a stakeout in the Gangnam area of Seoul from February 27 to March 5, arresting A and six other suspects in succession as they met with victims. The police seized 365.2 million won on the spot and returned it to the victims.

50 million KRW intended to be delivered by a victim, who was deceived by a reading room fraud organization, to the group led by Mr. A. Seoul Metropolitan Police Agency

B and his group stole six gold bars worth approximately 1.18 billion won at market value from three victims. In January, the police staked out the Jongno area in Seoul and caught the suspects in the act of handing over gold bars between collectors, seizing two gold bars worth about 480 million won at the scene and returning them to the victims.

The investigation revealed that recent scam and phishing crimes have evolved to become increasingly organized, with roles subdivided into primary in-person collectors, secondary couriers, and tertiary money launderers. Furthermore, most of the victims were found to be from the older generation, typically in their 50s and 60s or older. The police explained that there has been an increase in cases where elderly victims unfamiliar with smart devices are deceived by criminal organizations into personally delivering bundles of cash or gold bars.

The police plan to continue tracing the upper-level organizations and money laundering routes by conducting forensic analysis on the confiscated collectors' mobile phones.

A representative from the Seoul Metropolitan Police Agency stated, "Most high-paying part-time jobs recruited through Telegram and similar channels are, in reality, roles for collecting criminal proceeds," adding, "No financial institution or state agency such as the prosecution ever directly collects cash or gold bars from individuals."

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