Creating 30 Accounts Over Four Days to Scam Dozens in Secondhand Transactions

Abuse of Savings Account and Account Number Change Service
Not Detected Even by Fraud History Inquiry System

A new scam method has emerged that exploits freely openable installment savings accounts and the 'account number change service' to defraud dozens of people in used goods transactions, prompting a warning for caution.

According to a Yonhap News report on the 12th, Mr. Kim, a man in his 30s living in Gwangju, Gyeonggi Province, found a post selling an iPhone on a used goods trading site on the 1st. Mr. Kim agreed to a parcel transaction with the seller, Mr. Lee, who claimed to reside in Mokpo, Jeollanam-do, and first checked Mr. Lee’s phone number and account number through 'The Cheat,' a fraud transaction history inquiry service.

Mr. Kim confirmed that Mr. Lee’s contact information and account had never been reported for fraud, and after receiving a photo of Mr. Lee’s resident registration card for verification, he proceeded with the transaction with confidence. After receiving a photo of the parcel invoice from Mr. Lee, he transferred 960,000 KRW to Mr. Lee’s account. However, Mr. Lee later cut off contact, and Mr. Kim never received the item that was supposedly sent by parcel.

Photos of used items and ID card sent by Lee to Kim [Photo by Informant, Yonhap News]

The victims who gathered in a group chat after being scammed by Mr. Lee in used goods transactions, like Mr. Kim, number 37, with total damages amounting to 32 million KRW. Most of them had checked Mr. Lee’s account number on 'The Cheat' before the transaction and confirmed that it had never been reported for fraud, but this proved useless. This is because Mr. Lee used freely openable installment savings accounts that can be opened without limit for used goods transactions.

Freely openable installment savings accounts have no restrictions on new account openings, allowing one person to open dozens of accounts at a single bank in a day. Also, as the name suggests, these accounts allow deposits at any time the depositor wishes, not on designated dates, so others can deposit money into the account. In contrast, regular deposit and withdrawal accounts have restrictions on opening new accounts within a certain period to prevent their use in financial fraud.

From the 31st of last month to the 3rd of this month, Mr. Lee opened at least 31 installment savings accounts under his name at Bank A over four days and used them for used goods transaction scams. He avoided fraud history checks by creating a new account each time he committed fraud.

Mr. Lee also used regular deposit and withdrawal accounts for used goods transaction scams. The reason he could evade fraud history checks even while using regular deposit and withdrawal accounts was because he used the 'account number change service.' This service allows depositors to change their account numbers at will, originally intended to let depositors change their bank account numbers to numbers they prefer (such as their mobile phone number) for easier memorization.

However, since account numbers can be easily changed online without limits on duration or frequency, the service is sometimes exploited for financial fraud crimes. Mr. Lee is known to have repeatedly changed the number of one deposit and withdrawal account under his name at Bank A and scammed at least five people. It is presumed that he changed the account number whenever his account number was registered on 'The Cheat.'

In response, Bank A told Yonhap News, "The service created for customer convenience has been misused for fraud, contrary to its original purpose," and added, "We are considering improving the service by limiting the number of times an account number can be changed." Regarding the loophole of freely openable installment savings accounts, the bank said, "Authorities and the banking industry have brainstormed to find improvement measures, but unlike voice phishing, there is no legal basis for used goods transaction scams, so effective measures have not been established," and added, "A legal amendment is needed first to include goods transaction fraud like used goods trading within the scope of the Act on the Prevention of Electronic Financial Telecommunications Fraud."

Requesting Account Payment Suspension Difficult in Used Goods Transactions

Fraud disguised as goods transactions, such as used goods trading, is not subject to regulation under the Act on the Prevention of Electronic Financial Telecommunications Fraud, so there is no legal basis to request account payment suspension. In contrast, in cases of voice phishing, if an account is suspected of being used for fraud, financial institutions can immediately suspend payments on the account upon the victim’s report without police request.

A bill to include 'acts disguised as goods transactions' under the regulation of the Act on the Prevention of Electronic Financial Telecommunications Fraud was submitted to the National Assembly but has not been passed.