Loan-for-Gift-Card Scheme is 100% Scam, Warns Financial Regulator

South Korea's Financial Supervisory Service (FSS) has issued a consumer alert regarding a new voice phishing scam targeting low-income individuals. The fraudulent scheme lures victims by promising loans in exchange for their bank account details, which are then used to launder money obtained from other phishing victims.

Scammers impersonate employees of financial institutions, such as savings banks, and approach individuals with poor credit histories. They falsely claim that purchasing gift cards will build credit and make them eligible for loans. Believing this, victims provide their bank accounts and check cards to the fraudsters.

The compromised accounts are then used as conduits to receive funds stolen from other voice phishing victims. Once the illicit money is deposited, the scammers immediately purchase large quantities of gift cards from self-service kiosks at major retailers. These gift cards are then easily converted into cash, effectively laundering the stolen money.

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The phrase 'you can get a loan if you buy a gift card' is 100% a scam, and the moment you hand over your bank account and check card, you could become not a victim but a subject of punishment, so extreme caution is needed.

The FSS strongly warns that any offer stating "you can get a loan if you buy a gift card" is a 100% scam. Individuals who hand over their bank accounts and check cards not only become victims but could also face criminal charges for their unwitting involvement in the fraud. The FSS advises immediate reporting to the financial institution to freeze the card and account, followed by a report to the police, if any suspicion arises after handing over the card.

In response to this evolving threat, the FSS has collaborated with major retailers to lower the purchase limit for gift cards at self-service kiosks from 5 million won per transaction to 1 million won per day and per transaction. This measure aims to disrupt the scammers' ability to quickly launder large sums of money.

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If you feel something is wrong after handing over the card, you must immediately report the card lost or frozen to the relevant financial institution, stop account transactions, and report to the police.