From Fake Crypto Investment Schemes to Impersonating Volunteer Groups: 26,782 Apprehended in Financial Crimes and Cyber Fraud

[Financial News] Police conducted a focused crackdown on financial crimes affecting people's livelihoods, including fraudulent fundraising, illegal private lending and direct-transaction fraud, as well as cyber fraud, apprehending more than 26,000 people over six months. Financial crimes included a series of fraudulent fundraising schemes promoted as crypto asset investments, while direct-transaction fraud accounted for half of all cyber fraud cases. Police also uncovered organized crimes operated from overseas bases.
The National Office of Investigation said on the 21st that its focused crackdown on financial crimes affecting people's livelihoods and cyber fraud, conducted from March 23 to August 31, resulted in 61,482 cases and 26,782 people being apprehended. Of those, 809 people were detained. The overall crackdown will continue through October 31.
Among financial crimes affecting people's livelihoods, illegal private lending accounted for the largest number of cases, with 1,359 cases and 1,730 people apprehended, including 81 who were detained. Fraudulent fundraising and pyramid schemes accounted for 363 cases, with 694 people apprehended and nine detained. Violations of the Capital Markets Act totaled 83 cases, involving 215 people, 10 of whom were detained.
Recent fraudulent fundraising and investment scams have included numerous cases in which money was stolen under the pretext of crypto asset investments. Because victims of online and non-face-to-face crimes are often dispersed nationwide, police are merging cases for investigation, led by direct-investigation units at city and provincial police agencies. Illegal private lending schemes have also diversified, including fake gift certificate preorders and the promotion of so-called "self-rescue loans" as bait for small loans. 
Busan Metropolitan Police Agency's Major Crimes Investigation Unit uncovered a group that persuaded people seeking small loans to engage in so-called "phone cashing" and stole 236 mobile phones worth 450 million won from telecommunications companies. Investigators found that the group also filed false lost-item reports to claim insurance payouts and obtain replacement handsets. A total of 136 people involved were apprehended, and one was detained.
In cyber fraud, direct-transaction fraud accounted for 30,757 cases, or 51.5% of the total. A total of 7,436 people were apprehended, including 253 who were detained. Game-related fraud accounted for 4,468 cases, with 1,691 people apprehended and nine detained. Shopping mall fraud totaled 4,365 cases, involving 780 people, 74 of whom were detained.
Police explained that the growing popularity of secondhand trading platforms has made direct-transaction fraud more accessible. Recently, they have also uncovered organized crimes operated from overseas bases, with members dividing roles such as deceiving victims, transferring money and withdrawing funds. Another scheme involved recruiting nominee bank accounts in South Korea in cooperation with overseas fraud organizations and laundering the criminal proceeds.
Daejeon Dongbu Police Station previously uncovered a domestic organization that provided nominee bank accounts recruited nationwide to a phishing organization in the Philippines. Investigators found that the group received approximately 560 million won in transfers from 884 victims and laundered the money through crypto assets. Thirteen people were apprehended, including 10 who were detained.
Alongside the special crackdown, police are operating a "Malicious Fraud Tracking Team" to pursue fraud suspects who have evaded capture for extended periods. After adding 78 dedicated personnel in March, police established an operating structure consisting of 284 teams at 261 offices nationwide, with a total of 1,006 personnel. From March through August, the teams apprehended 2,318 people in 4,204 cases.
During the pursuit, police also arrested a wanted suspect who had repeatedly evaded them by giving the identity details of his identical twin brother. The suspect was accused of stealing approximately 20 million won from 61 victims by pretending online to sell used luxury goods. The tracking team at Gangwon Chuncheon Police Station realized that he liked gaming and eventually arrested him after searching more than 20 PC cafés.
From January through August, the total number of fraud cases reported was 291,746, down 8.0% from 317,131 during the same period last year. The apprehension rate rose by 2.3 percentage points, from 56.3% to 58.6%, over the same period.
Hong Seok-gi, head of the National Office of Investigation, said, "We plan to continue intensive investigations by merging cases nationwide to apprehend the principal offenders, and we will use the Malicious Fraud Tracking Team to pursue and apprehend the remaining suspects to the very end."

[email protected] Kim Ye-ji Reporter