A Total of 194 Cases This Year... Losses Reach 21.9 Billion Won
Police: "Always Suspect Online Investment Solicitations"
Illegal investment "leading room" scams that lure investors with promises of high returns are becoming increasingly prevalent in Busan. As cases of victims losing large sums after being deceived by claims of massive profits in a short period of time come to light, authorities are urging the public to exercise particular caution.
According to Yonhap News, citing an announcement by the Busan Metropolitan Police Agency, there were a total of 194 cases of illegal investment leading room-related fraud detected in the Busan area from January to May this year.
The police arrested 118 individuals on charges including fraud, and of these, 23 were taken into custody. The confirmed losses so far amount to 21.9 billion won.
Leading rooms operate by recommending stocks or virtual assets, or by offering to invest on behalf of clients, typically through group chat rooms on social networking services (SNS). The police warned that this method can entice victims even more quickly than traditional voice phishing schemes.
In one case, a man in his 50s who runs a small business in Busan, referred to as Mr. A, was invited in March to an online band after watching a broadcast by a popular YouTuber who provides stock investment information. The band included more than 70 other participants, and the administrators encouraged members to sign up for a fake securities trading app that used the name of a well-known financial institution without authorization.
The administrators enticed investors by claiming, "If you participate in the ○○○ project hosted by ○○ Securities, you can earn a 500% profit."
Mr. A began by transferring 10 million won in early April, gradually increasing his investment. The app showed that he had made tens of millions of won in profits. However, when Mr. A tried to withdraw his earnings, the customer service center demanded that he pay a 17% fee in advance as a condition for withdrawal.
After this, Mr. A was removed from the app and was unable to recover his entire investment of 180 million won. It was later revealed that the app was a fake platform with no connection to any real financial institution.
Mr. A said, "The main screen of the band displayed a photo of the YouTuber, who has one million subscribers, and even the voice was identical," adding, "When I visited a law office, I found that there were at least 10 other victims with similar experiences."
Mr. A and the other victims have jointly taken legal action, appointing a lawyer and submitting a formal complaint.
A police official stated, "Whenever you receive investment solicitations via phone, text message, or SNS, you should always be suspicious," adding, "We will strictly crack down on those operating illegal investment leading rooms."
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