Financial Supervisory Service
Warns of Ongoing
Cryptocurrency Investment Scams
#In June, a man in his 30s, referred to as Mr. A, received a call from a scammer, Mr. B, who introduced himself as an employee of a well-known securities company (falsely). Mr. B claimed that he would refund the membership fee Mr. A had previously paid to a lottery number prediction website. He showed Mr. A a fake document, purportedly from a government agency, instructing a refund of the membership fee. Mr. B then encouraged Mr. A to sign up for a fake virtual asset wallet site, claiming that the refund would be paid in cryptocurrency.
Mr. A trusted Mr. B after seeing the business card of the securities company and the government document provided by Mr. B, and proceeded to sign up for the wallet site. The wallet interface appeared to show that actual coins had been deposited, which further increased Mr. A's trust. Mr. B then claimed that an excessive amount of coins had been prepaid and demanded that Mr. A deposit the corresponding amount in cash. Believing Mr. B's claim that he would find buyers so that Mr. A could make several times the profit in a short period, Mr. A transferred a total of 124 million won. However, when Mr. A later requested to sell the coins, Mr. B repeatedly delayed and eventually cut off all contact.
On August 10, the Financial Supervisory Service warned that, as the enthusiasm for virtual asset investment continues, cryptocurrency investment scams that lure victims with promises of compensation for investment losses, free coin giveaways, or guaranteed high returns are still rampant, urging the public to exercise caution.
The Financial Supervisory Service explained that scammers approach victims claiming to compensate for past financial investment losses or damages from personal information leaks, present fake documents in the name of government agencies, or impersonate employees of financial companies to build trust with investors.
These scammers deceive victims by claiming to provide high-yield fake coins as compensation for losses, then demand payment for the coins by claiming that an excessive amount was paid out, or induce victims to make large investments through additional loans.
The Financial Supervisory Service emphasized that if a business operator cannot be found in the list of registered virtual asset service providers, it is not only operating illegally but is also likely to be a fake exchange created for fraudulent purposes. They advised the public to verify whether the business matches the registered virtual asset service provider reported to the Korea Financial Intelligence Unit, including the corporate name and domain address.
Additionally, the Financial Supervisory Service explained that there have been cases where scammers impersonate employees of registered virtual asset exchanges. Therefore, if someone approaches claiming to be an employee of a registered virtual asset exchange, it is necessary to contact the customer service center of the relevant exchange to verify the facts.
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