"Will the 25-time Fraudster Be Caught?"... Fraud and Embezzlement Crime Arrests Drop Below 50%

Economic Crimes Increase Amid Stock and Coin Booms
Investigating Police Face Legal Review Challenges and Limits of Individual Responses

Employee A, who is accused of embezzling approximately 61.4 billion KRW over six years at Woori Bank, is being transferred from Namdaemun Police Station in Jung-gu, Seoul to the prosecution on the 6th. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Jang Sehee]#Mr. Lee (27) quit his job on the 23rd and was scammed by voice phishing while looking into loans. Although he reported it to the police, the response he received was "At best, they can catch a courier." As voice phishing crimes continue, police stations are flooded with dozens of calls daily asking, "Is this really a voice phishing scam?"

#Mr. Choi (24) was scammed last month while trying to purchase luxury secondhand clothing. This month alone, there have been 25 reports on the scam victim information sharing site 'The Cheat,' but the secondhand transaction scammer has yet to be caught.

In the first quarter of this year, the arrest rate for fraud and embezzlement in Seoul was less than 50%

As fraud and embezzlement crimes continue to occur, the actual arrest rate has been confirmed to be less than half. According to the Seoul Metropolitan Police Agency's "Crime Occurrence and Arrest Status in Seoul for the First Quarter of This Year" released on the 28th, the arrest rates for fraud and embezzlement were 49.0% and 39.4%, respectively. In contrast, arrest rates for violent crimes such as murder (70.8%), robbery (85.2%), and rape and sexual assault (89.8%) were relatively high. Financial crimes are more difficult to investigate than other crimes due to factors such as the overseas residence of suspects and the complexity of warrant application procedures. Additionally, proving the intentionality of fraud charges is not easy.

A police officer working in the investigation department of a frontline police station said, "Fraud and embezzlement require the testimony of the parties involved, but various evidence such as bank accounts, contracts, and recordings are also necessary," adding, "When the amounts are large, lawyers representing the parties make it even more difficult to respond." Because of this, collecting evidence takes a long time, and the overall volume is large, with each police officer handling at least about 30 cases.

Experts: "Stock and cryptocurrency market boom also affects... Strengthen management and supervision such as blocking phishing numbers"

In addition to various frauds, embezzlement cases in large corporations and financial sectors continue unabated. On the 25th, it was revealed late that an employee of a Saemaeul Geumgo in Seoul embezzled over 4 billion won over 16 years. Embezzlement cases have also occurred at Gangdong District Office and AmorePacific. Another police officer said, "Fraud and embezzlement cases are handled individually rather than by teams, so there is not much time to spare."

Regarding this, Seung Jae-hyun of the Korea Institute of Criminal Justice Policy explained, "Recently, the stock and cryptocurrency markets have been booming, leading to an increase in related crimes," adding, "When the economy worsens, economic crimes tend to increase." He also noted, "Fraud, embezzlement, and breach of trust have very complicated constituent elements, making legal review of these crimes difficult."

Meanwhile, the National Assembly Research Service emphasized in "Legislative and Policy Trends on Phishing Scams in Major Countries and Implications" that "As phishing methods and means have become more diverse and sophisticated recently, the damage amount is increasing," and stressed, "In addition to existing countermeasures such as blocking phishing numbers and managing and supervising burner phones, new response measures need to be considered."