A new type of credit card fraud ring was caught by the police for using overseas credit card information stolen through smishing to make payments at domestic disguised merchants, embezzling tens of billions of won in card payments.
A new type of credit card fraud ring was caught by the police for using overseas credit card information stolen through smishing techniques in China to make payments at domestic disguised merchant stores, embezzling tens of billions of won in card payments. Photo by Seoul Metropolitan Police Agency
The Narcotics Crime Investigation Unit of the Seoul Metropolitan Police Agency announced on September 2 that it had arrested four individuals, including a domestic recruiter identified as Mr. A (age 62), on charges of fraud under the Act on the Aggravated Punishment of Specific Economic Crimes. Among them, two have been taken into custody.
In addition, the police have booked 28 people, including Mr. B (age 51), who lent their names to open disguised merchants, without detention on suspicion of violating the Specialized Credit Finance Business Act. The ringleader, Mr. C, a Chinese national who orchestrated the entire operation, is currently being pursued.
According to the police, this credit card fraud ring installed malicious apps on victims' mobile phones through smishing, stole overseas credit card information, and then exported the card terminals of domestic disguised merchants to China to make payments using the NFC (Near Field Communication) method.
Through these methods, from around December 2023 to July of last year, they generated approximately 3 billion won in false sales and embezzled the payments from credit card companies.
The police view this case as a new type of multi-victim fraud that combines smishing and NFC payment methods. By installing malicious apps on smartphones to steal payment information and connecting it to domestic terminals to siphon off credit card payments, this crime represents an evolution from traditional physical card counterfeiting schemes.
To prevent such new types of crime, the police plan to strengthen cooperation with related agencies and continue enforcement activities.
A police official stated, "This is a serious crime that poses a potential threat to domestic cardholders as well, so extra caution is required," and urged, "Please refrain from installing apps of unknown origin, make it a habit to keep your mobile phone security updated, and enable credit card usage notifications."
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