Widespread Fraud in Secondhand Transactions Exploiting Free Savings Accounts... Financial Supervisory Service Issues Consumer Alert

Published 31 Mar.2024 12:00(KST)

Financial Supervisory Service, Yeouido, Seoul. Photo by Younghan Heo younghan@

#Fraudster Mr. A posted fake listings of concert tickets, electronic devices, and other items on social networking services (SNS) and secondhand trading platforms for seven months starting from July last year. He received about 200 million KRW from approximately 700 victims before disappearing. Mr. A exploited the fact that there are no restrictions on opening bank installment savings accounts by using newly opened installment savings accounts for each fraudulent transaction. Victims were unable to verify the scam transaction accounts through inquiry sites before making payments.

As the method of abusing bank installment savings accounts for secondhand trading scams has become rampant, the Financial Supervisory Service (FSS) issued a consumer alert on the 31st.

According to the FSS and the National Police Agency, as the online secondhand trading market expands, related fraud crimes continue to occur. The number of cases increased by about 27,000 from 141,000 in 2021 to 168,000 last year.

In response, the FSS announced plans to strengthen cooperation with the National Police Agency to actively respond to online secondhand trading fraud crimes. They will conduct focused crackdowns on online secondhand fraud crimes and impose strict punishments. Additionally, they will guide major secondhand trading sites to provide methods for identifying bank-specific installment savings account numbers so that buyers can verify whether the seller’s account is an installment savings account. Furthermore, through the introduction of the banking sector’s abnormal financial transaction detection system (FDS), they plan to detect accounts abused for secondhand fraud in advance and suspend payment for goods.

The FSS also emphasized consumer precautions. When trading secondhand goods, it is safer to meet the seller in person to check the items before the transaction or to use safe payment services provided by secondhand trading sites. If direct transfer to the seller’s account is unavoidable, it is necessary to verify whether the seller’s account is an installment savings account through the bank-specific account number system and to be especially cautious if it is confirmed as an installment savings account, as this may indicate fraud.

Fraudsters tend to delay the shipment of goods to postpone police reports and investigations. Therefore, the FSS advised that when transferring payment, buyers should set a deadline with the seller for shipping the goods. Prompt reporting to the police is also necessary if fraud is suspected.

An FSS official stated, "The FSS and the National Police Agency plan to continue strengthening close cooperation by sharing new fraud methods and preparing countermeasures to respond to rapidly changing crime tactics."