38 Billion Won Defrauded from 215 Small Business Owners
The small business community has welcomed the arrest of all members of a 'no-show' scam organization that operated out of Cambodia.
On January 16, the Korea Federation of Micro Enterprises issued a statement, saying, "We express our welcome and gratitude for the news that all members of the no-show scam group have been arrested by the Seoul Eastern District Prosecutors' Office," and added, "We hope this will serve as an opportunity to eradicate no-show scam crimes at their root."
According to the Voice Phishing Joint Investigation Team of the Seoul Eastern District Prosecutors' Office on January 15, the office, in cooperation with the National Intelligence Service and Cambodian investigative authorities, indicted all 23 members of the no-show scam organization, who defrauded 215 small business owners of approximately 3.8 billion won.
The Korea Federation of Micro Enterprises stated, "The organization uncovered this time used heinous methods, impersonating credible institutions and individuals such as military units, city halls, journalists, and politicians, luring businesses to purchase wine and other items on their behalf for company gatherings." The statement continued, "They produced fake documents and even prepared crime scripts, systematically and deliberately exploiting the goodwill and desperation of small business owners, which makes the nature of their crime extremely egregious."
The statement further emphasized, "Their malicious actions, approaching small business owners-who cannot afford to lose even a single customer-with the bait of large orders, go beyond mere financial damage. These acts undermine social trust and even break the will to continue their livelihoods, making them anti-social crimes."
According to an investigation submitted to Assemblyman Heo Young of the Democratic Party of Korea by the National Police Agency, there were 4,506 reported cases of no-show damages from January to September last year, with total damages amounting to 73.7 billion won. Based on this, the average loss per case was approximately 16.3 million won. For the criminal group apprehended this time, the average loss per case was also about 17.6 million won.
The Korea Federation of Micro Enterprises stated, "We hope the investigative authorities will track the criminal proceeds to the end and take measures to ensure they are returned to the victims." The federation also urged, "As scam methods become increasingly sophisticated, the government should strengthen publicity and preventive education so that small business owners can remain vigilant and respond proactively."
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