Voice Phishing Joint Task Force Arrests 30 Including Domestic and International Ringleaders... Develops 'Payment Suspension Backtracking' Investigation Technique (Comprehensive)

Kim Ho-sam, head of the government joint investigation team for voice phishing (telephone financial fraud) crimes, is explaining the facts of the crime during a briefing on the crackdown of a voice phishing criminal organization involving organized crime and drug offenders at the Seoul Eastern District Prosecutors' Office in Songpa-gu, Seoul, on the morning of the 1st.
[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] A voice phishing organization involving drug offenders and organized crime members has been caught by the prosecution.

The Seoul Eastern District Prosecutors' Office Voice Phishing Crime Government Joint Investigation Team (Joint Investigation Team) announced on the 1st that a total of 30 people were booked on charges including fraud. Among them, 8 were indicted in detention, and 12 were indicted without detention. Investigations are ongoing for 6 people, and 4 have had their prosecution suspended.

As a result of a full reinvestigation of the case in July this year, in which two cash collectors including Mr. A (34) were sent without detention, the Joint Investigation Team arrested and indicted four people including the domestic mastermind Mr. B (39), the currency exchange handler Mr. C (42), the Chinese national overseas order broker Mr. D (41), and the official document forgery handler Mr. E (37). Subsequently, 22 additional people including the Chinese mastermind and fake bank account distributors were booked. This month, three people including Mr. F (54), the leader of the Dongbangpa organized crime group who distributed and brokered fake bank accounts, were detained.

According to the prosecution, the Chinese mastermind and the domestic mastermind are accused of deceiving 23 domestic victims from 2013 to June this year under the pretexts of account-related crimes and low-interest loans, embezzling a total of 950 million KRW. The Chinese masterminds received victim information from call centers and instructed cash collectors to receive the victim's money. They are also charged with impersonating police officers (impersonation of public officials, etc.).

The main distributor of fake bank accounts and the account holders are accused of providing 18 fake bank accounts to the voice phishing organization from December last year to June this year, enabling the embezzlement of about 400 million KRW from 8 victims.

During the voice phishing investigation, the Joint Investigation Team confirmed drug-related crimes by the domestic masterminds and seized narcotics. They also booked the leaders of the Busan organized crime groups ‘Dongbangpa’ and ‘Chilseongpa’ action squads for voice phishing crimes. Regarding the Chinese mastermind, additional crimes were confirmed, and an arrest warrant was issued; Interpol red notice and criminal justice cooperation were requested.

A prosecution official stated, "This result was possible because, with the launch of the Joint Investigation Team, prosecution, police, National Tax Service, Customs Service, Financial Supervisory Service, and the Korea Communications Commission were able to conduct a joint investigation as one team, from account tracking to identifying accomplices, on-site arrests, searches, and detention."

The Joint Investigation Team also developed an investigative technique using payment suspension data of accounts used in voice phishing. Using payment suspension data obtained with a single warrant, the team identified all accounts related to hiding and laundering the victim's money, including the final withdrawal account. By tracing back multiple rounds of laundering and transfer records, they were able to additionally identify 62 million KRW in fraud proceeds.

A prosecution official said, "It was possible to make arrests by analyzing and tracing back the payment suspension data," adding, "We expect this to have a crime deterrent effect, showing that even transactions through fake bank accounts can lead to arrests."

The prosecution stated that no victim funds have been recovered so far. A prosecution official said, "Since transactions are made under borrowed names, no victim funds have been recovered yet," and added, "We are continuing to track assets."

Since its launch on July 29, the Joint Investigation Team has booked a total of 93 people and detained 20. A prosecution official said, "We will continue to root out the entire voice phishing network from low-level members to top masterminds through forced repatriation of masterminds residing overseas," and added, "We will do our best to protect our citizens from voice phishing crimes."