'Bank Loan Notification Texts Are Always Phishing'... Illegal Private Loans Hurting Ordinary People Alert

[Asia Economy Reporter Kim Jin-ho] As the economic recession caused by COVID-19 prolongs, cases of inducing 'illegal loans' targeting ordinary citizens are rapidly increasing.

On the 20th, the Financial Supervisory Service (FSS) issued a consumer alert regarding illegal private financing, stating, "Recently, text message advertisements impersonating financial companies have surged."

According to the FSS, illegal loan advertisements last year totaled 298,937 cases, a 24.4% increase compared to the previous year (240,288 cases). Attempts to deceive ordinary citizens by exploiting the difficult economic situation are significantly rising.

Recently, illegal loan advertisements have surged in the form of text messages impersonating financial companies. Most cases pretend to introduce official loan products of financial companies, but when consumers respond, it leads to loan scam-type voice phishing.

They use phrases such as 'policy fund support loan' or 'low-interest refinancing loan' to exploit the difficulties of economically vulnerable groups. In May alone, about 50,000 related spam reports were received by the Korea Internet & Security Agency.

So-called 'locust-style advertisements,' which use illegal loan advertisement posts or phone numbers for a short period (about 2 to 3 weeks), are also prevalent. Recently, illegal loan advertisements have expanded to target even teenagers vulnerable to financial knowledge and legal matters, with proxy deposit advertisements spreading mainly through social networking services (SNS).

The FSS warned that loan advertisements via phone calls, text messages, or faxes in the name of financial companies are highly likely to be loan scam-type voice phishing or illegal loan businesses. They advised that if a loan is needed, consumers should call the official number of the financial company or visit the branch directly to inquire.

Additionally, to prevent the spread of damage caused by illegal loan advertisements, the FSS urged prompt reporting to the FSS, police, or Korea Internet & Security Agency upon discovery.

An FSS official explained, "To respond immediately and efficiently to evolving illegal loan advertisements, we will promote the advancement of monitoring systems and strengthen cooperation with related organizations."