Blog, Criminal

Maybe you have already experienced it: you got a call from your bank, saying that your card had been used in some weird locations and that they wanted to make sure that the card was not stolen. The person on the other end of the line asks you for your bank details, like your social security number, bank account number, and even pin code. Thinking this is a legitimate call from your bank, you trustingly give the information over the phone. A few hours later, you found out your bank account has been drained empty. You have just fallen victim to voice phishing.

Voice phishing is becoming an increasingly common crime. As everywhere in the world, voice phishing is becoming an increasing problem in South Korea. It is known as 보이스피싱 in Korean, or officially as 전기통신금융사기. Although voice phishing incidents have decreased between 2018 and 2020 – from 34,132 cases to 31,681 cases – the total amount scammed has increased massively, from 404 billion won in 2018 to over 700 billion won in 2020. 

What Is Voice Phishing?

The Financial Supervisory Service (FSS, 금융감독원) defines “Voice Phishing” (or vishing) as a type of fraudulent crime that defrauds another person’s property through non-face-to-face transactions using telecommunication means. Even though there are many types of voice phishing, one thing they all have in common, is that they happen over the phone or via text message. They are never face-to-face, unlike other scams. 

Voice phishing is a very common crime and targets all kinds of people. The elderly are especially prone to be scammed this way, as they are very used to being able to trust the phone and authority. 

Foreigners in South Korea are also often victims of voice phishing. This is due to two reasons. Firstly, the messages or phone calls received are in difficult Korean, and many people do not understand them completely. They may think that the messages are common in Korea, and unknowingly submit their personal information. Secondly, scammers often target immigrants, because they are used to sending money home to their families. The scammers tell them that they can remit the money cheaper if they pay them a fee.

1. Examples of Voice Phishing

Although some voice phishing scams seem obvious – especially nowadays when voice phishing is so common – there are so many different techniques that anyone could fall victim to voice phishing.

These are major examples of voice phishing. Most of them are officially listed in FSS.

1.1 Fraud under the pretence of kidnapping or accident

The scammer manipulates the caller ID of the phone, calls the parent, and tells them that the child has been in an accident or been kidnapped. Some parents believe the scammer’s lies, especially when the child is gone to school, studying abroad, or in the military, and send a large amount of money for their child.

1.2 Fraud that impersonates someone through messenger (Messenger phishing)

The scammer hacks into a person’s online messenger and logs in, pretending to be that person, and sends messages to a family member or friend registered in the contact list. The scammer asks for money to help them out of some urgent financial trouble, which tricks the victim to send the money. They ask people to send small amounts of money repeatedly so that over time people send a large amount of money.

1.3 Fraud using online banking

The scammer impersonates a bank account employee, someone from a local tax office, or even a police officer, to scare the victim that their bank account/credit card has been used for someone else’s crime. The scammer demands the victim to share their private information about their bank account (ID, password, account number, PIN code, etc.) and credit card (password, card number, card validation code, etc.) and then uses the information to get a credit card loan in the victim’s name from online banking.

1.4 Fraud using a false text message

The scammer sends false text messages to the victim as if those were official notices from a financial company, state institution, or online shopping mall such as Amazon. The text message contains a link to a website, but when the victim clicks on the link, they are directed to a false website made by the scammer. The victim, believing that it is an official website, enters their private information, which is used by the scammer to steal their identity or drain their bank accounts.

1.5 Fraud using ATM

The scammer impersonates a police officer or other government authority, to scare the victim that someone else is trying to withdraw money from their bank account and they urgently need to take safety measures. Or, the scammer impersonates a tax collector and entices the victim that they would refund the over-collected tax. Either way, the scammer makes the victim visit a nearby ATM and operate the machine as they were told. Of course, the machine ends up sending the money to the scammer from the victim’s bank account.

1.6 Fraud that tricks the victim to transfer the money

The scammer impersonates a police officer or other government authority, to scare the victim that someone else is trying to withdraw money from their bank account. The scammer tells the victim that in order to track the account transactions, they need the victim to transfer some money to a special account made by the police. Or, that the victim’s account is no longer safe, so they need to move their money into a new, safer account. Either way, the victim ends up sending the money to the scammer’s account.

1.7 Tech support scam

The scammer tells the victim that their laptop or computer is infected with a virus, and asks them to download software that gains them access to their computer. When the victim connects to the bank websites, they are directed to a false website made by the scammer, and if the victim enters their privation information, it gets stolen by the scammer.

1.8 Fraud that tricks the victim about loan

The scammer impersonates an employee of a bank or a loan company and tells the victim that they would give a loan with low interest. The victim, usually the people who are financially challenged and in desperate need of a loan, eagerly accepts the news. The scammer demands the victim’s private information, or makes them send money to their account, saying that it is a procedure to get a loan from their bank or company.

Korean Laws On Voice Phishing

Because the amount of damage from voice phishing is increasing rapidly, the South Korean government and prosecution are working hard on countermeasures. In 2011, the Special Act On The Prevention Of Loss Caused By Telecommunications-based Financial Fraud And Refund For Loss (전기통신금융사기 피해 방지 및 피해금 환급에 관한 특별법) was enacted. 

The main contents of this law are as follows.

• When a user applies for a loan or withdraws their savings deposit, the finance company (such as a bank or insurance company) should take measures to identify the person, to check if it is really the user themselves doing it. If the damage occurs to the user because the finance company didn’t take the measures for the identification, the finance company shall be liable to such damage.
• If an account of a user is presumably used for suspicious transactions that may be caused by voice phishing, the finance company should postpone or temporarily suspend depositing or remittance of the account. And then the company should notify the user and take measures of identification immediately.
• The victim of voice phishing can ask for the suspension of payment from their account to the financial company.
• When the account is suspended but it actually wasn’t used for voice phishing, the finance company should cancel the suspension. Also, the user can raise an objection to the suspension of payment by proving that it wasn’t used for fraud.
• After the account is suspended and no objection was raised, the finance company requests FSS to make a public announcement of the “procedure for extinguishment of claims.” This means that the victims can apply for the remedy of their damages for the next two months, and when their claim is valid, FSS would let the finance company refund for loss of the victims with the money in that account.
• When a person is found guilty of voice phishing, the person becomes the “person subject to restriction of electronic financial transactions (전자금융거래제한대상자)” and cannot make any electronic financial transaction for a certain amount of time.
• When a certain phone number is used for voice phishing, the police, the prosecutor, or FSS can ask the Ministry of Science and ICT to cease the telecommunications service for that phone number.

There are other regulations to prevent voice phishing in Korean banks.

• If more than KRW 1,000,000 is withdrawn or transferred at one time, withdrawal and transfer through ATM would be delayed for 30 minutes. If you want to withdraw or transfer money during those 30 minutes, you should go directly to the bank teller, not the ATM.
• When a person tries to open a new account in the bank, the bank should demand the person to prove their purpose for this new account. For instance, if you need a new account to get a paycheck from a new job, you can present your employment contract as evidence. If you cannot prove your purpose, you can still open the account, but withdrawals and transfers from that account would be limited to a certain amount.
• When a person opens too many new accounts in a short time, they are not allowed to open any more accounts.

1. Being A Victim Of Voice Phishing

So what should you do if you have accidentally become a victim of voice phishing in South Korea? 

Most importantly, you should immediately report to the police and explain what happened. The police know what voice phishing scams are happening in South Korea and will best advise you on your next steps. This would be also helpful to immediately suspend your bank account and bank card. If you are fast enough, hopefully, the scammers will not yet have had time to take out money, although this is not often the case. If you have also given away personal information, you have to discuss with the police if it is necessary to change your resident number, for example.

If you have been scammed out of money through a voice phishing scam, it is advisable to contact a lawyer right away. They can help you with your case at the police, making sure that everything is noted down correctly. Therefore, it is important to find an English-speaking lawyer, like Seoul Law Group, so that they can make sure that you are being represented fairly.

If the police do end up apprehending the scammer, a lawyer can help you file a civil lawsuit, or apply for a “refund for loss” according to the Special Act mentioned earlier. If you can prove that (financial) damage was done to you by the scammer, the scammer or the bank could be ordered to pay you money. It is possible that that is not the same amount as you were scammed out of. An English-speaking lawyer can help you prepare for the lawsuit and give you the best chance of winning.

2. Being Accused of Voice Phishing

What if you are accused of voice phishing by the South Korean police or prosecution? Regardless of whether you are guilty or not, immediately find a qualified English-speaking lawyer that can help you navigate the accusations. They can help prove your innocence while making sure that you understand every step of the process.

3. What Can You Do To Prevent Voice Phishing

Of course, prevention is better than healing, so here are some tips on preventing falling victim to voice phishing.

Firstly, never give any personal information – like bank details, social security number, or credit card information – over the phone. No bank or government institution will ever ask for this over the phone. If they do ask for it, hang up, and look up the official number of the bank or organization online. Call that number and tell them what happened, they will want to investigate too.

Secondly, if you receive a text message asking for money, from someone saying they are your friend or relative, always call them on the number you know well to check if it is really them. It is highly unlikely that someone you know well will text you from an unknown number asking for money.

Finally, never transfer large amounts of money over the phone when asked by someone you have never met. Whether they ask for an investment, a payment to reduce your loans or get a better remittance fee, or a donation to charity, always ask to see credentials.

Also, you can always check if suspicious messages you have received are real by contacting your bank or government institution. Usually, when there are grammatical mistakes or spelling mistakes, it is an easy way to tell the messages are fake, and probably a voice phishing scam!