Unprecedented Scam Bureau Takedown: $18 Million Seized, 10,000 Bank Accounts Under Investigation, Potential Losses Escalating

According to Chosun, the Busan Police Agency in South Korea has announced the dismantling of a large-scale investment fraud ring that defrauded 284 victims of a total of approximately 24.5 billion won (equivalent to around 438 billion VND).

The police have arrested 118 individuals involved, with 28 suspects—including A., the ringleader in his early 20s—detained for further investigation.

From October 2023 to April this year, the criminal group posed as investment experts, operating chat rooms on social media to lure victims into pre-prepared fake trading websites.

To build trust and convince victims to invest, these websites displayed “fake” profits, making investors believe their accounts were generating returns. Exploiting the hype around pre-IPO stocks rumored to “double upon listing,” the group vanished after amassing 24.5 billion won. On average, each victim lost approximately 86 million won, with one individual losing up to 1.87 billion won.

The police described the criminal group as operating under a “cellular organization” model with specialized departments. Recruiters lured victims into social media chat rooms, call centers deceived victims via phone or social media, and a money laundering team converted illicit funds into cash, checks, or Tether cryptocurrency before transferring them to higher-ups. The group also hired foreign money mules to enhance anonymity and evade tracing.

To legitimize the funds, the ringleaders established multiple shell companies, using corporate accounts to issue checks and funnel money through multiple layers before reaching the top. Members were even sent to “training facilities” to learn investigation counter-scripts and were closely monitored to prevent leaks.

Notably, police noted that this is a rare fraud ring operating within South Korea, as most investment scam operations involving chat rooms and call centers are typically based overseas to avoid detection. Operating domestically allowed the group to easily recruit personnel, tightly manage members, and control the entire fraud process. To conceal their activities, they rented offices in sparsely populated redevelopment areas and frequently changed locations to evade discovery.

During raids, police seized 104.9 million won in cash, luxury items, jewelry, and 107 disposable phones. The court also approved a pre-indictment asset freeze on 676 million won worth of real estate linked to the ring. Analyzing over 10,000 bank accounts used for transactions led investigators to suspect that the actual total losses could far exceed the reported figure, as many victims have yet to come forward.

The Busan Police stated they are continuing to hunt for the remaining suspects, including the mastermind. Authorities warned that investment scams disguised as chat rooms and fake websites are becoming increasingly sophisticated, urging investors to remain vigilant and report any suspicious activity promptly.