Impersonation of Seoul Officials with "Purchase First" Scam... Small Business Owners Warned Against Fraud

Inducing Equipment Purchase with Promise of Reimbursement Later
Fake Civil Servant Phone Numbers Included in Notices

Recently, there has been an increase in fraud cases where scammers impersonate the Seoul Metropolitan Government or civil servants, approach small business owners under the pretense of promoting support programs, and then induce them to purchase equipment from specific vendors. The Seoul Metropolitan Government has advised verifying the actual existence of such programs or officials before proceeding.

According to the Seoul Metropolitan Government on August 11, there have been recent reports of cases where certain jewelry retailers in the city have been contacted or approached to encourage participation in a so-called "self-authentication kiosk installation project for the prevention of voice phishing and money laundering."

The fraudulent documents used in these cases bore the name and logo of the Seoul Metropolitan Government and included phrases such as "100% full support for installation costs," "on-site inspection," and "subject to administrative action and fines if not installed." In particular, the documents stated that installation and registration must be carried out through a designated company, and claimed that once the business owner purchases and installs the equipment first, the support funds would be refunded to the business owner's account after on-site confirmation and submission of documentation—effectively a "purchase first, reimbursement later" scheme intended to induce payment.

During this process, the scammers reduce suspicion by instructing victims to submit a subsidy application form, a transaction statement or tax invoice, a copy of their business registration certificate, a copy of their bankbook, and photos showing installation completion—all documents that legitimate support programs might reasonably request.

The impersonators heightened business owners’ sense of urgency to rush the purchase. The fraudulent documents included statements claiming that on-site inspections would be carried out from a certain date, and that failure to install the kiosk could result in administrative measures or fines.

The Seoul Metropolitan Government emphasized the need for caution, as it does operate a wide range of genuine support programs for small business owners, and such impersonation crimes exploit these existing programs. The official 2026 small business support programs run by the city include initiatives on startup, growth, crisis recovery, and renewed challenges, and all application and support procedures are announced through official channels.

The Seoul Metropolitan Government advised that if anyone claiming to be a city or district official introduces a specific vendor or requires prepayment for goods via phone call or text message, business owners should immediately stop the transaction and verify the facts. The city provides response guidelines for public official impersonation scams, including "never make advance payments," "check names, departments, and contact information," "confirm the legitimacy of the purchase order," and "report crimes" among others.

Lee Yeonhwa, Director of the Department of Fair Economy at the Seoul Metropolitan Government, stated, "Recently, impersonators have cleverly combined public support programs and administrative inspections, even using forged official documents and business cards to win the trust of small business owners. Even if you are contacted in the name of the city or a civil servant, if you receive a proposal to buy a specific product or pay funds first with the promise of reimbursement through a support program later, you should immediately stop the transaction and verify directly with the relevant institution."

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