From voice phishing to coin-related crimes, financial fraud victims on the rise
Despite the economic downturn, the investment frenzy in virtual assets, stocks, and similar ventures continues, leading to an increase in cybercrimes using these investments as bait. Financial fraud schemes, once dominated by 'voice phishing,' have shifted to cyber environments, such as 'investment chat rooms,' resulting in a growing number of victims.
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The surge in prices of virtual assets like Bitcoin and the skyrocketing value of IPO stocks, where quick investments can yield substantial returns, have been identified as reasons for the increase in cyber fraud crimes driven by a get-rich-quick mentality.
Attorney Pureun “Ian” Hong from Decent Law Firm explained, "Many people fall victim to fraud after being influenced by stories of acquaintances who made large sums through actual coin investments. In some cases, this type of fraud spreads like a pyramid scheme, creating collective victims, and at times, victims themselves turn into perpetrators, requiring caution."
Initially, the trend was to simply operate investment chat rooms and demand fees for investment guidance, but the scale of fraud has since grown with the creation of sophisticated fake investment applications.
Furthermore, recently, small crime syndicates have been operating in a decentralized network structure, where different groups specialize in victim recruitment, money laundering, distribution of ghost accounts, and website development. This decentralized structure makes it easier for smaller groups to sever ties with the larger organization if they are caught, making it difficult for law enforcement to apprehend all the culprits involved.
