Twelve Arrested for Collecting Over 100 Million Won in Loan Brokerage Fees
Personal Information of 220,000 Applicants Sold to Illegal Private Lenders
Police Urge Public to Report Crimes Amid Crackdown on Loan Scams
Twelve individuals, including employees of a savings bank, have been apprehended by police for stealing and selling the personal information of approximately 220,000 loan applicants to illegal private loan businesses.
The Incheon Police Agency’s Criminal Investigation Unit announced on May 12 that three people?including a man in his 30s, identified as Mr. A, a former employee of a savings bank, and Mr. B, a man in his 30s who was the head operator of an illegal private loan call center?have been arrested on charges including fraud and violations of the Personal Information Protection Act.
Police also booked without detention Mr. C, a current employee of the savings bank in his 30s, and eight call center employees on charges including violations of the Personal Information Protection Act. In addition, police seized approximately 50 million won in cash from the call center office and froze assets worth about 28 million won, including foreign vehicles owned by the suspects, through pre-indictment preservation measures.
Mr. C is accused of illegally selling the personal information of 220,000 customers after receiving a proposal from his former colleague Mr. A, from July 2018 to March of this year, to provide the personal information of individuals who inquired about loan eligibility for a payment of 300 won per case. Mr. A then sold this information to Mr. B, the head of the illegal private loan call center, for 700 won per case.
Mr. B, together with his staff, operated the call center and used the illegally obtained personal information to approach 58 individuals, collecting approximately 100 million won in fees under the pretense of loan brokerage commissions.
Investigations revealed that the victims, who were low-income and low-credit individuals, were eligible for “Sunshine Loan,” a financial product for ordinary citizens, and could have easily checked their loan eligibility through the “Itda” app provided by the Korea Inclusive Finance Agency. However, Mr. B and his accomplices deceived them into paying brokerage fees by pretending to arrange loans.
A police official stated, “We will continue to crack down on illegal private loan crimes targeting vulnerable groups amid difficult economic conditions,” and warned, “Be cautious, as any demand for cash under the pretense of loan guarantee fees or commissions is likely to be a scam.”
Meanwhile, police urged citizens to actively provide information and report crimes, as a special voluntary surrender and reporting period for crimes closely related to the livelihoods of ordinary citizens?such as illegal private lending, phishing scams, and investment fraud?will be in effect during May and June.
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