[Exclusive] Targeting Wealthy Moms... Payback Scam Using 'High-End Baby Books' as Bait

Payback Scams Nationwide from Seoul, Busan, Sejong, etc.
Deceived Victims by Claiming 'Book Purchases and Tuition Payments' Possible with Reward Points

[Asia Economy Reporters Jang Sehee and Gong Byungseon] A (42), who is accused of fraud and is awaiting trial, is suspected of deceiving victims by purchasing goods cheaply and then promising to return the money over a period of about one year from May 2020 to July 2021.

According to the victims' group on the 14th, A opened a 'KakaoTalk open chat room' targeting so-called wealthy mothers who buy Disney World English (Wolpam) textbooks worth about 10 million won. He received cash in advance for purchasing goods and services and promised a 40% payback on the payment amount. If 60% of the 10 million won worth of goods, i.e., 6 million won, was paid upfront, he guaranteed a 40% profit by paying the full 10 million won over 3 to 6 months.

At first, he carried out the payback normally to reassure the victims, then asked them to add additional deposits under the pretexts of book purchase fees, academy fees, insurance premiums, and foreign car purchases. The victims deceived by A are located nationwide in places such as Seoul, Busan, and Sejong, and the amounts defrauded ranged from as little as 30 million won to as much as 200 million won. The total damage amounts to 800 million won.

Among the victims, some took out loans to add deposits and were unable to recover their money. Victim B said, "Just before receiving the payback, A told me it would be good to add more money, so I took out a loan of 50 million won to add additional deposits," adding, "I deposited about 200 million won in total over 30 installments." B has so far recovered only 80 million won out of 200 million won and is currently using an overdraft due to financial difficulties.

A sometimes immediately deposited money or conducted paybacks on short cycles such as three months to victims who continuously protested as promised. It is also known that most people trusted him and added additional deposits after he properly deposited money at first.

The victims filed a fraud complaint against A at Seosan Police Station in June last year, and last month, the Daejeon District Court Seosan Branch decided to proceed with a non-custodial trial against A. A non-custodial trial means that the prosecution requests a formal trial while the suspect remains out of custody.

Experts unanimously agree that special caution is needed as fraud methods become more sophisticated.

Professor Hong Kihoon of Hongik University's Department of Business Administration said, "If you are asked to deposit money or trade goods through channels such as KakaoTalk open chat rooms where identities cannot be clearly verified, there is a high possibility of being exposed to fraud," adding, "Remembering that 'penny wise, pound foolish' is a way to avoid fraud."