“Pay the credit-rating upgrade fee upfront to get a loan”: Voice-phishing ring fleeces 145 victims

[Financial News] The ringleader of a voice-phishing ring that was arrested in China had impersonated financial institutions and tricked more than 100 victims into handing over money under the pretext of credit-rating upgrade fees and guarantee insurance premiums, while promising to arrange loans.
The International Crime Investigation Unit of the Busan Metropolitan Police Agency said on the 28th that it had recently worked with Chinese police to arrest A, in their 50s, the ringleader of a voice-phishing ring, and B, in their 50s, who produced and supplied malicious apps, in China, and refer them to prosecutors in custody on charges including organizing and operating a criminal group.

A is suspected of having led a voice-phishing crime ring based in Guangdong Province and other parts of China and swindling about 1.5 billion won from 145 victims between June 2013 and July 2015. B is also suspected of participating in the crimes by developing malicious mobile apps with features such as call interception and supplying them to voice-phishing groups from May 2018 to January 2019.
Police found that A’s group impersonated financial institutions and called victims, promising to arrange loans before demanding that they send money in advance for a credit-rating upgrade fee or guarantee insurance premium needed to obtain a loan. The group continued its voice-phishing crimes by dividing roles among call-center team leaders and agents, as well as local cash-out operatives.
During investigations into other voice-phishing ringleaders and related individuals, police obtained evidence indicating that A and B had participated in the crimes and identified them. Police then investigated the organization linked to A, arresting around 50 members between August 2021 and October 2022, 20 of whom were detained.
A and B, who were staying in China, were placed on the International Criminal Police Organization’s Red Notice list. Last November, they were selected as joint arrest targets in “Breaking Chains,” an international cooperation operation led by the Korean National Police Agency, and the search continued through international cooperation. Breaking Chains is a joint operation led by the Korean National Police Agency targeting international crimes such as transnational scams and human trafficking. Participating countries share details of actual cases and investigative leads, and work to arrest and repatriate suspects.
As a result, A was apprehended in China last January and forcibly repatriated to Korea. Police learned that B had voluntarily entered the country on September 14 and arrested B at the airport. Police established the case against B, who denied the crimes, based on statements from accomplices and others, and referred B to prosecutors in custody.
A police official said, “Busan police will continue to share investigative leads with the Korean National Police Agency and overseas law enforcement agencies, and will pursue and apprehend key members of the organization through international cooperation, including overseas ringleaders and suppliers of tools used in the crimes, such as malicious apps.” The official urged the public, “Be especially cautious if asked to install an app from an unverified source in connection with a loan consultation, or to pay money upfront, such as a guarantee fee or commission.”[email protected] Byeon Ok-hwan Reporter