Vietnam-Based Ring Referred in 'No-Show Scam' After Impersonating Military Officials, Swindling KRW 1.5 Billion

Approached 62 Construction Contractors and Induced Them to Buy Materials on Their Behalf
Set Up Office in a Villa in Vietnam... Nine Referred to Prosecution Under Arrest
Koreans in Their 20s and 30s Joined Forces, Connected by Hometown Ties and Senior-Junior Relationships

A no-show scam ring that set up an office in Vietnam and swindled KRW 1.5 billion by impersonating military officials has been referred to the Public Prosecution Office with its members in custody.

The Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency said on Nov. 13 that it had referred nine members of the no-show scam ring, including a man in his 20s identified as A, to the prosecution under arrest on suspicion of joining and participating in a criminal organization, fraud and other offenses.

A and the others are accused of swindling KRW 1.55 billion from domestic construction contractors by impersonating military units while operating from a base in Ha Long City, Vietnam, from November 2025 to June 2026. Investigators found that they defrauded 62 companies by luring them into purchasing materials from a designated supplier as part of a construction contract, then diverting the payments.

Three-Tier Organization Ran Scams in Vietnam, Disguised Calls as Domestic

According to police, the group operated out of an office in Vietnam with a three-tier structure consisting of a leader, managers and call center agents. All nine arrested members were Korean, and most were in their 20s or 30s. The group was made up mainly of people who already knew one another, including hometown acquaintances and former classmates or colleagues. Some were found to have joined through job recruitment websites.

A screenshot showing how members of a major no-show scam ring impersonated government offices, provided by the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency. Seoul Metropolitan Police Agency.

The scam began with an offer of a construction contract to a building contractor. The suspects approached companies while impersonating military officials and offering them construction work on facilities such as barracks, then falsely claimed that materials needed for the project had to be purchased from a supplier designated by the military. They led victim companies, hoping to win the contract, to purchase the materials on the military’s behalf and deposit payment into an account belonging to a separate company. A and the others cut off contact after receiving the money.

The group also used a method to make calls from overseas appear to come from within South Korea. They left phones fitted with fraudulently registered SIM cards in South Korea, then used tablet computers overseas to place calls through those phones. This made calls placed from abroad appear to come from domestic numbers, making it difficult for victims to realize they were receiving calls from overseas. Police also found evidence that the suspects had obtained numerous fraudulently registered SIM cards and switched them out to evade detection.

From Restaurant Reservation Scams to Impersonating Government Offices... Tactics Evolve to Target Small Businesses

Police said the case reflected how no-show scams are expanding their tactics to target small businesses. The scams originated with the so-called “no-show” practice of making large reservations at restaurants and then failing to show up. The schemes later evolved into asking restaurants to purchase wine from another supplier on the scammers’ behalf. Recently, they have expanded to target small businesses in various sectors, including construction, equipment and logistics, by inducing them to purchase goods on behalf of others.

More recently, scammers have begun impersonating government offices, threatening administrative inspections and then inducing victims to buy related equipment. They impersonate officials from district offices or fire stations, warn that victims will be fined if violations are found during an inspection, and falsely promise to reimburse the cost as a subsidy if equipment is purchased from a specified supplier. In other cases, scammers impersonate existing business partners and ask companies to purchase goods from another supplier, citing concerns such as exceeding the limit for contracts awarded without competitive bidding or being flagged in an audit.

According to police, no-show scams accounted for 6,710 of the 20,245 new types of phishing fraud cases reported nationwide from October 2025 to September 2026, or 33.1%. Along with investment chatroom scams—in which victims are advised on investment picks—and romance scams, in which money is requested under the pretext of a romantic relationship, they made up the majority of cases. During the same period, no-show scams accounted for 2,219 of the 7,502 new phishing fraud cases reported to the Seoul Metropolitan Police Agency, or 29.6%. They were the second most common type, following investment chatroom scams, which accounted for 2,425 cases (32.3%).

Seoul Agency's Phishing Fraud Investigation Unit Uncovers 44 Scam Organizations in One Year

The Phishing Fraud Investigation Unit within the Seoul Metropolitan Police Agency’s Financial Crime Investigation Unit was established in October 2025 as part of a government-wide effort to eradicate phishing scams. In the approximately one year through October 2026, it arrested 633 people, including members of 25 overseas phishing organizations operating in countries such as Cambodia and 19 domestic phishing organizations involved in investment chatroom scams and money laundering. Of those arrested, 221 were detained.

Police stressed that people should be wary of any request to purchase goods on someone else’s behalf. They said it is unusual in a legitimate transaction to be asked to buy goods from a third-party supplier unrelated to the contract, and that it is safer not to comply.

Lee Gye-hyeong, chief of the Financial Crime Investigation Unit’s Second Phishing Investigation Team at the Seoul Metropolitan Police Agency, said, “No-show scams are heinous crimes that exploit the desperation of small-business owners,” adding, “Thorough enforcement and precautions are needed to counter evolving criminal tactics.”

He added, “If someone claims to be an official from a government office or a major corporation, call the official contact number listed on its website to confirm that the person is actually in charge,” and said, “You should meet the person in charge in person before doing business. If the other party repeatedly puts off meeting, you should suspect a scam.”

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