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๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Crime & Justice

Small deposit triggers 'frozen account' nightmare for South Korean man

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • A South Korean man's bank account was frozen after a small, unexplained deposit of 200,000 won from an unknown individual, leading to a "frozen account" crime.
  • The victim, a customs broker, faced significant professional and personal disruption as all his financial accounts became inaccessible for online transactions.
  • The "frozen account" crime exploits a system designed to protect fraud victims, where perpetrators deposit small amounts into random citizens' accounts to freeze them, causing distress and disruption.

A South Korean man in his 60s found his bank accounts frozen for over a month after a seemingly innocuous deposit of 200,000 won from an unknown person named 'Yoon OO.' This incident, part of a growing trend known as "frozen account" crime, has severely impacted his ability to conduct daily business as a customs broker.

The victim, identified only as Mr. K, initially tried to return the misdirected funds through police and bank fraud hotlines. However, his situation escalated when his securities firm notified him of restrictions on electronic financial transactions. Soon after, all his bank and securities accounts became inaccessible for online transfers, effectively paralyzing his financial activities.

I thought I should return the money directly, but I worried I might get involved in something unexpected if I didn't go through a financial institution.

โ€” Mr. KThe victim describes his initial reaction and caution upon receiving an unexplained deposit.

This "frozen account" crime exploits a system intended to protect victims of financial fraud. Perpetrators deposit small sums, often from illegal gambling sites or voice phishing operations, into ordinary citizens' accounts. Banks then freeze these accounts as part of the investigation into the source of the funds, inadvertently penalizing innocent individuals.

In that case, we saw some of the worst accommodation that we had experienced.

โ€” Mr. KThe victim explains his concern about potential entanglement in criminal activities.

Mr. K's situation worsened when he learned his account was frozen because the initial deposit was linked to a " ๋Œ€ํฌํ†ต์žฅ" (a type of disposable, unregistered account used in criminal activities) involved in a voice phishing case. The bank, acting on a report from a voice phishing victim, froze Mr. K's account and designated him as subject to electronic transaction restrictions.

While financial authorities have streamlined procedures for victims to contest frozen accounts, Mr. K experienced significant delays. After submitting necessary documentation and receiving a police confirmation of no involvement in criminal activity, it still took over ten days for the financial transaction restrictions to be lifted. He now advocates for legal improvements, suggesting immediate release from account freezes if victims of "frozen account" crimes can deposit the disputed funds into a fraud victim compensation pool.

Even with my considerable knowledge of finance from my work as a customs broker, it took over a month to escape this situation. It must be even more difficult for other victims.

โ€” Mr. KThe victim reflects on the difficulty of resolving the frozen account issue.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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