South Korea freezes 5,000 accounts in month targeting novel phishing scams

South Korea is grappling with a surge in sophisticated phishing schemes, prompting authorities to implement new measures that have already led to thousands of temporary account freezes. In the month following the introduction of a system to combat novel phishing tactics, financial institutions have frozen nearly 5,000 accounts suspected of fraudulent activity.

The Financial Intelligence Unit (FIU) reported that as of August 4, a total of 4,935 accounts were temporarily frozen by financial companies. The FIU reviewed these cases and notified financial institutions to freeze an additional 1,065 accounts deemed necessary. The remaining cases are still under review.

These new measures extend beyond traditional voice phishing to include "novel phishing" schemes that disguise themselves as transactions for goods or services. The FIU began applying account freezing measures to these types of scams on June 30. Accounts can be temporarily frozen for seven business days, with the possibility of an additional 60-day extension if necessary.

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Public officials' identities must be thoroughly verified, and extreme caution is advised for calls received on mobile phones. Proxy purchase requests are 100% no-show scams and should be rejected immediately.

The most prevalent type of scam reported was romance scams, accounting for 1,527 cases (41%). This was followed by proxy purchase scams, often referred to as "no-show" scams, with 1,376 cases (37%), and team mission scams at 847 cases (22%). Romance scams typically involve perpetrators building emotional connections online by impersonating celebrities, professionals, or military personnel, then demanding money for fabricated costs like customs fees or travel expenses. The FIU advises caution against remote contact and immediate payment requests.

Proxy purchase scams are also on the rise, with scammers posing as public officials or university staff. They offer to pay the difference for items purchased and delivered by a third party, then trick victims into sending money to fake company accounts. The FIU stresses the importance of verifying the identity of public officials and being wary of phone calls, urging people to reject proxy purchase requests outright as they are almost always scams.

Team mission scams involve recruiting victims through group chats, promising profits for completing tasks like writing reviews or watching videos. Scammers then demand upfront payments for investments or deposits. The FIU advises victims not to send money and to report such incidents to the police immediately.

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Do not send money and report immediately to the police.