Operated 105 Fake Financial Websites
Lured Investors by Imitating Real Securities Firms
Seduced with Phrases Like 'Immediate Deposits and Withdrawals' and 'Guaranteed Returns'
Disappeared When Investors Requested Withdrawals
Prosecution Seizes 3.5 Billion Won in Cash and Criminal Proceeds
A criminal organization that created a large number of fake securities firm websites and swindled investors out of significant sums has been brought to trial.
On May 27, the Cyber Crime Investigation Division of the Seoul Eastern District Prosecutors' Office (headed by Chief Prosecutor Shim Hyungseok) announced that it had indicted six members of the organization, including a 54-year-old identified as A, on charges including fraud, and indicted another five without detention.
According to the prosecution, from May 2020 to August 2023, the group created a total of 105 fake securities firm websites with names similar to actual financial companies, such as 'XX Asset' and 'XX Partners.' They allegedly sent 2.8 million spam text messages luring investors with offers such as 'free Samsung Electronics shares' and 'immediate deposits and withdrawals available.'
The group collected 111.5 billion won from victims under the pretense of investment funds. When investors requested withdrawals, they would either shut down the websites or block access, thereby embezzling large sums of money.
During the course of their crimes, the group actively used anonymous messengers like Telegram, overseas servers, burner phones, and virtual assets to evade law enforcement.
The prosecution detected a sharp increase in stock-related spam messages in the first half of this year, obtained related reports from the Korea Internet & Security Agency (KISA), and launched an investigation. They traced the links included in the messages to confirm the fake websites and subsequently apprehended the spam distributors and organization members one by one.
Through this investigation, authorities seized 1.075 billion won in cash and also took measures to preserve an additional 2.45439 billion won in criminal proceeds. All 105 of the fraudulent websites have been shut down.
A prosecution official stated, "As crimes impersonating actual financial companies become increasingly sophisticated, investors must be cautious about text messages from unclear sources or offers of free stocks," adding, "We will continue to expand investigations into digital financial fraud to prevent similar damages."
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