China-based voice-phishing ring that impersonated prosecutors and swindled 5 billion won arrested

[Financial News] Police have arrested a China-based voice-phishing criminal organization that impersonated financial institutions and swindled 5 billion won from victims in South Korea. The group was found to have recruited young adults in their 20s who were just starting their careers by promising high returns to those in need of quick cash.
The Busan Metropolitan Police Agency said on the 17th that it had arrested 67 people, including the Chinese national identified as Person A, in their 30s, on charges of violating the Act on the Refund of Telecommunications Financial Fraud Damage and the Electronic Financial Transactions Act, as well as organizing, joining, or participating in a criminal organization. Seventeen of them were detained.
The suspects are accused of forming an organization for criminal purposes in China and other countries from August 2015 through July 2021, then impersonating prosecutors and financial institutions to defraud victims in South Korea of 5 billion won. They operated call-center offices and divided responsibilities among the ringleader, call-center counselors, recruiters, cash collectors, and recruiters of bank accounts and SIM cards registered under other people’s names in South Korea and abroad.
The organization mainly recruited members through social media. It either posted advertisements for high-paying part-time jobs or persuaded acquaintances to leave the country by promising them high returns. Some recruits were young adults in their early to mid-20s who were just starting their careers. The group also encouraged members to actively participate in the crimes by promising higher commissions for bringing in new members or recruiting people whose names could be used for bank accounts and other financial services.
The suspects impersonated prosecutors using mobile phones registered under other people’s names. They called victims and told them, "A bank account opened under your name has been used in a crime. To determine whether the money in your existing account is related to the case, transfer it to the borrowed-name account or place the cash in a storage locker." They are accused of taking the money afterward.
They also impersonated financial institutions and falsely promised to refinance victims’ loans at low interest rates. After sending malicious apps and getting victims to install them, the suspects successively impersonated the Financial Supervisory Service and other institutions. They allegedly told victims that taking out an additional loan despite having an existing loan violated the terms and conditions, then used borrowed-name accounts to receive and steal money under the pretext of requiring repayment.
According to police, the suspects paid members’ criminal proceeds in the local currency, Chinese yuan (renminbi, RMB), to evade tracking by investigative authorities. A police official said, "We have requested the forced repatriation of 33 accomplices who are hiding overseas by asking the countries where they are staying to take action through a Red Notice issued by the International Criminal Police Organization." The official added, "If you have suffered losses, please report them actively."

[email protected] Baek Chang-hoon Reporter