"‘I Invested My Retirement Funds, but I’m Embarrassed’ - Surge in Fraud Crimes Targeting the Elderly"

Fraud Crimes Targeting Elderly Increase 1.3 Times in One Year
Fraud Victims in Income Cliff Situation... Bankruptcy Filings Also Rise

Fraud crimes targeting the elderly have significantly increased, becoming a social issue.

According to the National Police Agency on the 8th, the number of fraud cases targeting those aged 60 and over rose about 1.3 times, from 36,367 cases in 2021 to 46,046 cases in 2022.

Seoul Metropolitan Police Agency building.
Photo by Yonhap News

According to JoongAng Ilbo, Mr. Lee (74) heard from his neighbor Mr. Park (65), whom he met at a social welfare center last June, that "if you invest in a company in Seo-gu, Incheon, your money will double within a month." He invested his entire savings of 70.3 million won plus a loan of 60 million won, totaling 130.3 million won. This was money he had saved throughout his life while doing hard labor at construction sites.

However, he did not receive a single penny back from the investment and became one of the victims of the illegal multi-level marketing company Ado International.

He said, "I believed it because it was someone I had been close to for 3 to 4 years," adding, "All hope disappeared. I lost the will to live and tried to end my life several times."

Mr. Lee, unable to pay the monthly loan interest of 400,000 won, rented out his semi-basement villa room and has been living in a vinyl greenhouse for a year. Feeling ashamed and sorry to his children, he could not confess that he had been scammed.

Cyber fraud crimes targeting digitally vulnerable elderly people have also surged. According to the National Police Agency, the number of cyber fraud victims aged 60 and over quadrupled compared to 2019, reaching 11,435 last year. Cases of elderly people, who are effectively at an income cliff, going bankrupt after falling victim to fraud have also sharply increased. According to the Seoul Bankruptcy Court, as of last year, those aged 60 and over accounted for the largest share of personal bankruptcy applicants at 47.5%, and the proportion of those who went bankrupt due to investment failures such as stocks and coins has increased 4.5 times in the past three years.

Mr. Yoon (76), who lives in Seoul, also heard from an acquaintance introduced by a close friend last March that "if you invest 1.55 million won, you will receive 200,000 to 250,000 won per month." He thought, "After working hard all my life, heaven gave me a gift." Mr. Yoon handed over 40 million won in retirement funds to the acquaintance but received neither interest nor principal back.

Most elderly victims blame themselves for being deceived. Mr. Yoon said, "My loose personality was the problem," and "I trusted the wrong person and got scammed." He is currently working again to pay for his husband's hospital bills after resting due to knee pain as a caregiver for 15 years.

Professor Kwak Dae-kyung of Dongguk University’s Department of Police Administration said, "Fraud targeting the elderly, who are highly vulnerable to crime, is akin to social murder," adding, "Strengthening sentencing guidelines alone cannot reduce fraud damage; prevention education and other measures to stop it beforehand are the top priority."

He further emphasized, "Before investing money, I urge people to consult at least three people such as family members or close friends before taking action."