Advancement of investment fraud targeting the elderly
Investment fraud targeting the elderly is becoming more sophisticated. As digital accessibility among the elderly increases, their retirement funds are becoming increasingly vulnerable to new types of cyber fraud, leading to greater losses.
According to police reports, the number of elderly victims aged 61 and older has risen from 34,359 in 2019 to 44,470 in 2023. In 2019, only 8.13% of scams targeting the elderly were cyber-related, but by 2023, this figure had increased to 25.71%.
Experts warn that as the elderly engage more in online economic activities, their lower financial and digital literacy compared to other age groups makes them more susceptible to fraud by criminal groups.
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Pureun “Ian” Hong, managing partner at Decent Law Firm, explained, "Seeing cases of people making profits from coins and stocks, many are jumping into investments. While younger people find it easy to purchase safer investments, like publicly traded coins, through apps, the elderly often struggle with this and end up being defrauded when they entrust others with the process."
There has also been a consistent rise in cases where companies registered as similar investment advisory businesses evade the scrutiny of financial authorities and deceive vulnerable groups in the digital and financial space.
While authorities are conducting large-scale crackdowns and a revision to the Capital Markets Act, which includes regulations on the scope and operation of similar investment advisory businesses, is set to take effect in July, the number of reported companies in this category reached 2,207 as of May 3, 2024, with 79 new registrations this year alone.
