[The Police File]The Basic Act on Fraud Prevention: The 21st National Assembly Must Take Responsibility

Fraud Cases Surpass 100,000 in the First Quarter
Bill to Institutionalize Prevention Faces Automatic Dismissal if Not Passed by Next Month
Urgent Need to Establish Measures Against "Economic Murder"

The total number of domestic crimes reported in the first quarter of this year, as tentatively compiled by the National Police Agency, is 378,908. Among these, the most frequently occurring crime is by far fraud. In just the first quarter, there were 107,222 cases (28.2%), averaging over 1,000 incidents per day. Compared to the previous quarter, the fourth quarter of last year, when there were 88,651 fraud cases, this represents an increase of nearly 20,000. Since the police began releasing quarterly crime statistics in 2021, this is the first time a specific crime has exceeded 100,000 cases in a quarter.

Even neighboring Japan does not reach this level. In 2022, the Japanese police recognized 601,331 criminal cases (excluding traffic accidents), of which fraud accounted for only 37,928 cases, about 6.3%. Even considering differences in crime statistics compilation methods between countries, the severity of fraud crimes in South Korea stands out.

The public’s anger soars as fraud cases erupt almost daily. Occasionally, voices blaming victims with remarks like "They got scammed because they deserved it" can be heard, but no matter how cautious one is, there are limits to prevention through individual effort alone. This is because criminal methods are constantly evolving. It is practically impossible for individuals to know and respond to the numerous types of fraud such as illegal multi-level marketing, voice phishing, smishing, jeonse fraud, romance scams, insurance fraud, employment scams, used goods fraud, coin scams, and leading room fraud.

Therefore, national-level policy measures are essential to combat fraud crimes. This is why the ‘Basic Act on Fraud Prevention,’ currently proposed in the National Assembly, is drawing attention. This bill strengthens the state’s responsibility for fraud prevention and response. The core provision is the establishment of a ‘Fraud Integrated Reporting and Response Unit’ under the National Police Agency. This unit will have the authority to comprehensively receive fraud reports and complaints and swiftly block suspicious accounts. It will also share information with foreign agencies, analyze and provide information on new types of fraud, and conduct public fraud prevention education. It will serve as the central control tower for fraud response. The bill also requires the Commissioner General of the National Police Agency to formulate a ‘Basic Fraud Prevention Plan’ every three years to systematically address fraud crimes, and allows courts to disclose the identities of convicted fraud offenders similarly to sex offenders.

However, at this point, the passage of the Basic Act on Fraud Prevention in the National Assembly is uncertain. If it is not processed by the expiration of the 21st National Assembly’s term on the 29th of next month, it will be automatically discarded. Both ruling and opposition parties agree on the purpose and content of the law. After more than a year of deliberations including public hearings since its proposal in August 2022, the bill was passed with amendments by the Administrative and Security Committee, the relevant committee, last November. However, after being transferred to the Legislation and Judiciary Committee, it was discussed only once in January and has been stalled for three months during the election period without further discussion. If this continues, the 22nd National Assembly will have to reconsider the bill from scratch despite the efforts made by both parties.

Another term for fraud crime is ‘economic murder.’ Since it completely destroys a person’s life, fraud is no different from murder. Yoon Hee-geun, Commissioner General of the National Police Agency, emphasized that the Basic Act on Fraud Prevention is "a law absolutely necessary for the nation and its people." If the 21st National Assembly, which earned the worst reputation for failing to properly carry out political reform, pension reform, and more, wants to at least wash away some of its stains, it must responsibly pass the Basic Act on Fraud Prevention. It is hoped that the current National Assembly, with just over a month left in its term, will achieve a successful conclusion.