947 'ghost accounts' distributed using homeless individuals' identities; 25 arrested

Authorities have apprehended 48 individuals and detained 25 as part of a crackdown on a major operation that created and distributed over 900 "ghost accounts" using the identities of homeless people. The suspects are accused of fraud and violating electronic financial transaction laws.

According to the경기남부경찰청 (Gyeonggi Nambu Provincial Police Agency), the ringleaders established offices in motels and defunct businesses across the Seoul metropolitan area between January and April 2024. They allegedly obtained the personal information of 196 homeless individuals, established shell corporations in their names, and then opened corporate bank accounts. In total, they are accused of creating 947 such accounts.

These illicit accounts were reportedly supplied to various criminal enterprises, including investment-leading scam organizations, voice phishing rings, and operators of illegal online gambling sites. The organization is believed to have generated substantial criminal profits by charging monthly usage fees ranging from 1.5 million to 2 million won per account.

The investigation began last April while probing an investment-leading fraud case. Police discovered that the victim's funds were deposited into accounts opened under the names of homeless individuals, prompting a trace that uncovered the larger distribution network. Authorities confirmed the existence of two other "ghost account" distribution networks during the investigation and have since apprehended their members. The police plan to broaden their inquiry into the full extent of criminal proceeds and the fraud organizations that utilized these accounts.

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During the investigation, we confirmed the existence of two other ghost account distribution organizations and apprehended all related members.