"Like a Normal Transaction"... Gang Laundered 20 Billion Won from Voice Phishing Proceeds

2 People Detained, 3 People Prosecuted Without Detention

A group that disguised approximately 20 billion KRW obtained through voice phishing as legitimate transactions to evade investigation has been brought to trial.

Cash and gift certificates seized by the prosecution from the office of a gift certificate company. Provided by Seoul Western District Prosecutors' Office

On the 12th, the Criminal Division 1 of the Seoul Western District Prosecutors' Office (Chief Prosecutor Jo Man-rae) announced that they have arrested and indicted two individuals, including A (65), the representative of a gift certificate company, on charges of fraud and violation of the Act on the Regulation of Concealment of Criminal Proceeds. Additionally, three others, including employees of the gift certificate company and members of the check withdrawal organization, were indicted without detention. It was confirmed that A is a retired police officer who worked for about 10 years in the intelligence team of a police station.

They are accused of laundering approximately 20 billion KRW earned from voice phishing between July and October of last year by disguising it as legitimate gift certificate transactions. According to the prosecution, the group divided roles among check withdrawers, the gift certificate company, and cash collectors. The check withdrawers would withdraw funds obtained through voice phishing as checks and exchange them for gift certificates from the gift certificate company. Subsequently, the cash collectors would receive cash from the gift certificate company in exchange for the gift certificates, thereby disguising the transactions.

In April of this year, during the review of a case involving an organization member who withdrew voice phishing proceeds by check, the prosecution detected money laundering suspicions related to the gift certificate company and conducted account analyses and raids over several months. During this process, they seized 2 billion KRW in cash and gift certificates worth approximately 800 million KRW stored in the gift certificate company's office. The prosecution plans to recover the seized criminal proceeds through claims for return and other measures.

A prosecution official stated, "We confirmed and strictly punished that the proceeds from voice phishing crimes, which are widespread in our society, are being funneled into criminal organizations through organized money laundering," adding, "We will make every effort to maintain the prosecution so that the defendants receive sentences commensurate with their crimes."