"Beware of New Phishing Scams by Public Official Impersonators: 'Payment for Walkie-Talkie Proxy Purchases'"

4,935 Suspected New Phishing Accounts Temporarily Suspended

The financial authorities have urged consumers to exercise caution as a new type of phishing crime is rapidly increasing, wherein scammers impersonate public officials and induce small business owners and others to purchase specific goods on their behalf, pocketing the resulting losses.

The Korea Financial Intelligence Unit (FIU) announced on August 9 that a review meeting on the temporary suspension of transactions for accounts suspected of new types of phishing crimes was held on August 7, presided over by Assistant Director General for Policy and System Operations Ha Jusic. The meeting was attended by representatives from the National Police Agency, the Financial Supervisory Service, and financial industry associations.

The meeting covered: ▲the operational status of the "Temporary Suspension of Transactions for Suspected New Phishing Accounts" system, which has been in effect since June 30; ▲typical cases of consumer damage and public guidance by type of crime to prevent financial consumer harm; ▲difficulties faced by financial sector practitioners in handling the suspension of new phishing account transactions and possible measures for improvement.

Assistant Director General Ha stated, "Since the implementation of the system, there have been positive effects such as the early interruption of funds related to new phishing crimes." However, he emphasized, "Analysis of crime cases shows that victims continue to suffer from typical methods, so joint efforts are needed to prevent further recurrence."

Under the "Special Act on the Prevention of Loss and Refund of Damages from Electronic Financial Fraud," it has become possible to suspend transactions on accounts involved in new phishing crimes.

When a financial company identifies an account suspected of involvement in new phishing, it must temporarily suspend transactions for that account and report to the FIU. Upon being notified of a temporary transaction suspension, the FIU must respond to the financial company within seven business days with a review of the necessity to maintain the suspension, based on financial activity records between the victim and the account holder suspected of using the account for criminal purposes.

According to the FIU, during the one month from the effective date of the system until August 4, a total of 4,935 cases were reported to financial institutions and temporarily actioned due to suspected new phishing crimes. Of these, romance scams accounted for about 41% (1,527 cases), "no-show scams" (proxy purchase scams) about 37% (1,376 cases), and "team mission scams" about 22% (847 cases).

The financial companies temporarily suspended transactions for a total of 3,750 of these as accounts suspected of new phishing. The FIU reviewed 1,065 of these for the necessity of maintaining the transaction suspension and notified the financial institutions. For unresolved cases, financial companies continue to maintain temporary suspensions.

The FIU reported that "no-show scams" (proxy purchase scams) involving impersonation of public officials are surging. In a "no-show scam," criminals pretend to purchase goods or services by urging the procurement of materials from certain businesses, tricking the victim into depositing payment for procurement into a designated account, which is then stolen. This is a new type of phishing crime.

The FIU has advised the public to ▲verify authenticity via the official telephone number of the organization, ▲firmly refuse proxy purchase requests for items not handled directly, and ▲confirm any information related to government policies, such as support fund payments or required inspection equipment, through the relevant ministry or organization responsible.

The FIU plans to work with related ministries such as the Ministry of the Interior and Safety, Ministry of Justice, and Ministry of Education to implement countermeasures—including posting "no-show scam" prevention posters in public institutions such as local governments, correctional facilities, and schools. Financial institutions have also agreed to promote scam prevention awareness through both in-person and online channels.

The FIU stated that it plans to incorporate practical Q&As from the financial sector into future work guidelines. It also intends to strengthen the workforce dedicated to handling suspected new phishing accounts at financial institutions. Furthermore, legislative amendments to the Act on Reporting and Use of Certain Financial Transaction Information will be promptly pursued to ensure a clear legal basis for the transaction suspension system.

This content was produced with the assistance of AI translation services.