Gang Arrested for Systematically Laundering Voice Phishing Proceeds into Gold Bars

by Yoo Byeongdon

Published 10 Apr.2023 09:43(KST)

Three Arrested Including Domestic Currency Exchange Boss, Nine Organization Members Sent Without Detention

A large group involved in embezzling criminal proceeds obtained through voice phishing by converting them into gold bars has been arrested by the police.

The Gangbuk Police Station in Seoul announced on the 10th that they have arrested and sent three people, including the domestic exchange chief of the voice phishing operation, on fraud charges, and sent nine other members of the organization without detention.

They are accused of installing malicious applications on victims' mobile phones from December last year until this month and embezzling about 400 million won under the pretext of low-interest refinancing loans.

According to the police investigation, they were found to have divided roles by following instructions from an overseas call center, residing domestically, laundering the stolen money four times to evade law enforcement tracking, and remitting it abroad.

The Gangbuk Police Station in Seoul arrested 12 members of a voice phishing organization, including the domestic currency exchange manager, on charges of criminal organization activities and fraud, and detained three of them.
[Photo by Gangbuk Police Station, Seoul]

They purchased gold bars with the stolen money, collected them, exchanged them for cash, and then handed the cash to the remittance agents to send the money overseas.

After months of tracking, the police succeeded in identifying and arresting 12 middle-management members of the organization, including the domestic exchange chief.

Among the second-level collection agents were even teenagers, who were found to have communicated and received crime instructions from overseas members via social networking services (SNS) such as WeChat.

The police confiscated gold bars and cash worth about 100 million won from them and returned it to the victims.

Additionally, the police are investigating whether these individuals are involved in organizing and operating a criminal organization.

A police official stated, “We plan to continuously collect intelligence and conduct crackdowns to apprehend voice phishing criminals who make life difficult for ordinary citizens,” and urged, “Do not click or respond to URLs (internet address links) that prompt you to enter financial information, as ignoring them is the safest way to protect yourself from crime.”